Yahoo Finance Should Vista Group International (NZSE:VGL) Be Disappointed With Their 77% Profit?
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Vista Group International Limited (NZSE:VGL) share price is 77% higher than it was a year ago, much better than the market return of around 12% (not including dividends) in the same period. That's a solid performance by our standards! And shareholders have also done well over the long term, with an increase of 71% in the last three years.
View our latest analysis for Vista Group International
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Vista Group International was able to grow EPS by 26% in the last twelve months. The share price gain of 77% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago. The fairly generous P/E ratio of 68.10 also points to this optimism.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that Vista Group International has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Vista Group International will grow revenue in the future.
What about the Total Shareholder Return (TSR)?
We'd be remiss not to mention the difference between Vista Group International's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Vista Group International's TSR of 78% over the last year is better than the share price return.
A Different Perspective
Pleasingly, Vista Group International's total shareholder return last year was 78%. That includes the value of the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 21%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. Is Vista Group International cheap compared to other companies? These 3 valuation measures might help you decide.
Of course Vista Group International may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NZ exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
