That's better than the annualised return of 26% over half a decade, implying that the company is doing better recently. We're pleased to report that Halma shareholders have received a total shareholder return of 35% over one year. This is largely a result of its dividend payments! A Different Perspective As it happens, Halma's TSR for the last 5 years was 211%, which exceeds the share price return mentioned earlier. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.
Halma share price free#
We know that Halma has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). This optimism is visible in its fairly high P/E ratio of 56.82. And that's hardly shocking given the track record of growth. This suggests that market participants hold the company in higher regard, these days. This EPS growth is slower than the share price growth of 24% per year, over the same period. Over half a decade, Halma managed to grow its earnings per share at 13% a year. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business.
Halma share price driver#
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies. It's also good to see the share price up 14% over the last quarter. Long term Halma plc ( LON:HLMA) shareholders would be well aware of this, since the stock is up 197% in five years. But when you pick a company that is really flourishing, you can make more than 100%. The most you can lose on any stock (assuming you don't use leverage) is 100% of your money.
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