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MAV Beauty Brands (TSE:MAV) Shareholders Have Enjoyed A 83% Share Price Gain

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  • MAVBF

The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the MAV Beauty Brands Inc. (TSE:MAV) share price is up 83% in the last year, clearly besting the market return of around 37% (not including dividends). That's a solid performance by our standards! MAV Beauty Brands hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for MAV Beauty Brands

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).

During the last year MAV Beauty Brands grew its earnings per share (EPS) by 64%. This EPS growth is significantly lower than the 83% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
earnings-per-share-growth

It is of course excellent to see how MAV Beauty Brands has grown profits over the years, but the future is more important for shareholders. This free interactive report on MAV Beauty Brands' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

MAV Beauty Brands boasts a total shareholder return of 83% for the last year. Unfortunately the share price is down 2.8% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with MAV Beauty Brands (at least 1 which is significant) , and understanding them should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.