Introducing Adyen (AMS:ADYEN), A Stock That Climbed 56% In The Last Year
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The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Adyen N.V. (AMS:ADYEN) share price is up 56% in the last year, clearly besting than the market return of around -0.5% (not including dividends). So that should have shareholders smiling. We'll need to follow Adyen for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
See our latest analysis for Adyen
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 Adyen grew its earnings per share (EPS) by 83%. It's fair to say that the share price gain of 56% did not keep pace with the EPS growth. So it seems like the market has cooled on Adyen, despite the growth. Interesting. Of course, with a P/E ratio of 159.59, the market remains optimistic.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It is of course excellent to see how Adyen has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It's nice to see that Adyen shareholders have gained 56% over the last year. The more recent returns haven't been as impressive as the longer term returns, coming in at just 4.5%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NL 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 editorial-team@simplywallst.com. 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.
