• Tue. Nov 22nd, 2022

One-year returns for shareholders of Dr. Sulaiman Al Habib Medical Services Group (TADAWUL:4013) were , but its earnings growth was even better

ByMadeleine J. Pierce

Sep 22, 2022

Passive investing in index funds can generate returns that roughly match the broader market. But you can dramatically increase your returns by picking above-average stocks. Namely, the Dr. Sulaiman Al Habib Medical Services Group Company (TADAWUL:4013) the stock price is 16% higher than a year ago, much better than the market return of around 7.9% (excluding dividends) during the same period. This should therefore make shareholders smile. We’ll have to follow Dr. Sulaiman Al Habib Medical Services Group for a while to get a better idea of ​​its stock price trend, as it hasn’t been listed for a particularly long time.

After a strong gain last week, it’s worth seeing if longer-term returns have been driven by improving fundamentals.

Check out our latest analysis for Dr. Sulaiman Al Habib Medical Services Group

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings per share (EPS) with the movement of the share price.

Over the past year, Dr. Sulaiman Al Habib Medical Services Group has increased its earnings per share (EPS) by 21%. It’s fair to say that the 16% share price gain hasn’t kept pace with EPS growth. So it looks like the market has cooled down for Dr. Sulaiman Al Habib Medical Services Group, despite the growth. Interesting.

The image below shows how EPS has tracked over time (if you click on the image you can see more details).

SASE: 4013 Earnings per share growth September 22, 2022

We know that Dr. Sulaiman Al Habib’s medical services group recently improved its results, but will it increase its income? You could check this free report showing analyst revenue forecast.

A different perspective

It’s nice to see that the shareholders of Dr. Sulaiman Al Habib Medical Services Group have gained 18% over the past year, including dividends. A substantial portion of that gain has come in the past three months, with the stock rising 4.6% over that time. Demand for shares from multiple parties drives the price up; word may be spreading about its virtues as a business. Before you decide if you like the current course of action, check Dr. Sulaiman Al Habib Medical Services Group’s score on these 3 rating metrics.

If you like buying stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on SA exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Find out if Dr. Sulaiman Al Habib Medical Services Group is potentially overvalued or undervalued by viewing our full analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

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