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The worst outcome is if you lose all the money you invested after buying stock in a company (assuming no leverage).But you can earn a lot in comparison more More than 100% if the company is doing well. That is to say, Abu Dhabi Islamic Bank PJSC (ADX: ADIB) shares have risen 216% over the past three years. That payoff is solid as granite. The 27% gain over the past three months has also pleased shareholders.This may have something to do with the recently released recent financial results – you can find the latest figures by reading our company report.
As the week has been strong for Abu Dhabi Islamic Bank PJSC shareholders, let’s look at the trend in longer-term fundamentals.
See our latest analysis for Abu Dhabi Islamic Bank PJSC
SWOT Analysis of Abu Dhabi Islamic Bank PJSC
- Earnings growth outpaced the industry over the past year.
- The dividend is currently paid out of earnings and is expected to be paid out of earnings within 3 years.
- Low dividend compared to the top 25% of dividend payers in the banking market.
- Expensive based on P/E and estimated fair value.
- Annual revenue growth is expected to outpace the Emirian market.
- Annual revenue growth is expected to be lower than the Emirian market.
While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying business performance. A flawed but reasonable way to assess how company sentiment is changing is to compare earnings per share (EPS) to the stock price.
Abu Dhabi Islamic Bank PJSC has been able to grow its earnings per share by 23% a year for three years, driving up its share price. In comparison, the stock’s 47% annual gain has outpaced EPS growth. Therefore, it is fair to assume that the market values ​​the business better than it did three years ago. That’s not surprising given its track record of earnings growth over the past three years.
You can see how EPS has changed over time in the graph below (click the graph to see exact values).
We know that Abu Dhabi Islamic Bank PJSC has improved profits recently, but will it increase revenue?Check if analysts think Abu Dhabi Islamic Bank PJSC will Increased income in the future.
What about dividends?
When looking at return on investment, it is important to consider the difference between total shareholder return (TSR) and stock price return. TSR is a rate of return calculation that takes into account the value of cash dividends (assuming any dividends received are reinvested) and the calculated value of any discounted financings and spin-offs. As a result, for companies that pay good dividends, total shareholder return tends to be much higher than share price return. In the case of PJSC, Abu Dhabi Islamic Bank, it has a TSR of 259% over the past 3 years. This exceeds the share price return we mentioned earlier.Dividends paid out by the company thus boosted all shareholder returns.
Different perspectives
It is good to see that Abu Dhabi Islamic Bank PJSC has rewarded shareholders with a total shareholder return of 36% over the last 12 months. Of course, this includes dividends. This gain outpaces the annual total shareholder return of 33% over five years. As such, the sentiment around the company seems to be positive lately. Given that stock momentum remains strong, it might be worth watching the stock carefully to avoid missing out. I find it very interesting to look at long-term stock prices as a proxy for business performance. But to really gain insight, we need to consider other information as well. Consider, for example, the ever-present specter of investment risk. We have identified 2 warning signs With Abu Dhabi Islamic Bank PJSC (at least 1 may be serious) understanding them should be part of your investing process.
if you’re anything like me then you’ll no want to miss this free A list of growth companies that insiders are buying.
Note that market returns quoted in this article reflect the market-weighted average return of stocks currently traded on the Emirian Exchange.
Valuation is complicated, but we’re helping make it simple.
Find out if Abu Dhabi Islamic Bank PJSC is potentially overvalued or undervalued by viewing our comprehensive analysis which includes Fair value estimates, risks and caveats, dividends, insider trading and financial health.
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This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.
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