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Passive investing in index funds can generate returns that roughly match the overall market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Elvalhalcor Hellenic Copper and Aluminium Industry S.A. (ATH:ELHA) share price is 36% higher than it was a year ago, much better than the market return of around 8.6% (not including dividends) in the same period. So that should have shareholders smiling. We'll need to follow Elvalhalcor Hellenic Copper and Aluminium Industry for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
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. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the last year Elvalhalcor Hellenic Copper and Aluminium Industry grew its earnings per share (EPS) by 21%. This EPS growth is significantly lower than the 36% increase in the share price. This indicates that the market is now more optimistic about the stock.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into Elvalhalcor Hellenic Copper and Aluminium Industry's key metrics by checking this interactive graph of Elvalhalcor Hellenic Copper and Aluminium Industry's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Elvalhalcor Hellenic Copper and Aluminium Industry's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Elvalhalcor Hellenic Copper and Aluminium Industry hasn't been paying dividends, but its TSR of 39% exceeds its share price return of 36%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
A Different Perspective
It's nice to see that Elvalhalcor Hellenic Copper and Aluminium Industry shareholders have gained 39% over the last year. And the share price momentum remains respectable, with a gain of 17% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. Before forming an opinion on Elvalhalcor Hellenic Copper and Aluminium Industry you might want to consider these 3 valuation metrics.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GR 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 firstname.lastname@example.org. 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.