Investors in Mobile Telecommunications Company Saudi Arabia (TADAWUL:7030) will be pleased with their favorable 96% return over the past three years

Thanks in large part to Vanguard founder Jack Bogle, it’s easy to buy a low-cost index fund that should provide the average return of the market. But you can get higher returns by picking better-than-average stocks. to witness it, Saudi Arabia Mobile Telecommunications Company (TADAWUL: 7030) shares have risen 54% in three years, outpacing market performance. Zooming in, the stock is up a respectable 5.0% over the past year.

So let’s examine and see if the long-term performance of the business has been consistent with the progress of the underlying business.

Check out our latest review for Mobile Telecommunications Company Saudi Arabia

To quote Buffett, “Ships will circumnavigate the globe, but the Flat Earth Society will prosper. There will continue to be wide gaps between price and value in the market…’ One way to examine how market sentiment has changed over time is to look at the interaction between the price of the share of a company and its earnings per share (EPS).

Mobile Telecommunications Company Saudi Arabia has become profitable over the past three years. We therefore expect a rise in the share price over the period.

The graph below illustrates the evolution of EPS over time (reveal the exact values ​​by clicking on the image).

SASE: 7030 Earnings per share growth November 9, 2021

Dive deeper into Mobile Telecommunications Company Saudi Arabia’s key metrics by viewing this interactive chart of Mobile Telecommunications Company Saudi Arabia earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

Investors should note that there is a difference between Mobile Telecommunications Company Saudi Arabia’s total shareholder return (TSR) and the change in its share price, which we have covered above. TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. Saudi Arabia’s mobile telecommunications company hasn’t paid a dividend, but its TSR of 96% exceeds its share price return of 54%, implying it either started a business or raised funds low cost capital; thereby providing added value to shareholders.

A different perspective

Shareholders of Mobile Telecommunications Company Saudi Arabia earned a total return of 5.0% during the year. But it was below the market average. It’s probably a good sign that the company has an even better long-term balance sheet, having provided shareholders with an annual TSR of 10% over five years. It may well be a company worth watching, given the continued positive market reception over time. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. For example, we have identified 2 warning signs for Mobile Telecommunications Company Saudi Arabia (1 is concerning) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

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

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Sean B. Jackson