Investing in Maggie Beer Holdings (ASX:MBH) three years ago would have delivered you a 75% gain




  • In Business
  • 2022-10-31 02:56:33Z
  • By Simply Wall St.
 

It hasn't been the best quarter for Maggie Beer Holdings Limited (ASX:MBH) shareholders, since the share price has fallen 18% in that time. But over three years, the returns would have left most investors smiling After all, the share price is up a market-beating 71% in that time.

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.

View our latest analysis for Maggie Beer Holdings

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. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During three years of share price growth, Maggie Beer Holdings moved from a loss to profitability. So we would expect a higher share price over the period.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Maggie Beer Holdings' earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between Maggie Beer Holdings' total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Maggie Beer Holdings' TSR of 75% for the 3 years exceeded its share price return, because it has paid dividends.

A Different Perspective

While the broader market lost about 4.0% in the twelve months, Maggie Beer Holdings shareholders did even worse, losing 37%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 10% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Maggie Beer Holdings has 1 warning sign we think you should be aware of.

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 AU exchanges.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Bullish insiders bet CA$1.1m on Bonterra Resources Inc. (CVE:BTR)
Bullish insiders bet CA$1.1m on Bonterra Resources Inc. (CVE:BTR)

Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like...

Malibu Boats
Malibu Boats' (NASDAQ:MBUU) investors will be pleased with their favorable 85% return over the last five years

When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make...

Those who invested in United Rentals (NYSE:URI) three years ago are up 127%
Those who invested in United Rentals (NYSE:URI) three years ago are up 127%

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes...

Multiple insiders bought Pool Corporation (NASDAQ:POOL) stock earlier this year, a positive sign for shareholders
Multiple insiders bought Pool Corporation (NASDAQ:POOL) stock earlier this year, a positive sign for shareholders

It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it...

Kemper (NYSE:KMPR) shareholders are up 5.0% this past week, but still in the red over the last three years
Kemper (NYSE:KMPR) shareholders are up 5.0% this past week, but still in the red over the last three years

While it may not be enough for some shareholders, we think it is good to see the Kemper Corporation ( NYSE:KMPR ) share...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • Oyydof
    (2022-11-04 09:47:25Z)

    rocaltrol cost rocaltrol oral rocaltrol 0.25mg cost

    REPLY
  • Sjgrfr
    (2022-11-04 18:29:20Z)

    rocaltrol online order calcitriol online buy order calcitriol 0.25mg pill

    REPLY
  • Uqbiqc
    (2022-11-08 12:37:34Z)

    order generic zithromax 250mg neurontin tablets neurontin 800mg cost

    REPLY
  • Duihba
    (2022-11-09 15:37:25Z)

    order furosemide pill order stromectol 6mg generic stromectol canada

    REPLY
  • Jexsmm
    (2022-11-10 18:49:40Z)

    order plaquenil 200mg plaquenil 200mg pill ivermectin 6 mg online

    REPLY
  • Llpfcj
    (2022-11-12 01:47:33Z)

    order lipitor 10mg without prescription viagra pills buy sildenafil pill

    REPLY
  • Gzasoi
    (2022-11-13 04:31:38Z)

    order lisinopril 2.5mg pills cialis 5mg cialis 10mg drug

    REPLY
  • Dgdiyr
    (2022-11-14 07:25:02Z)

    lopressor 50mg tablet methylprednisolone without a doctor prescription methylprednisolone 16mg without a doctor prescription

    REPLY
  • Mvgcsv
    (2022-11-15 10:46:41Z)

    clomid canada lyrica pills buy lyrica generic

    REPLY
  • Juauyj
    (2022-11-16 16:31:28Z)

    triamcinolone 4mg pill albuterol for sale priligy 60mg usa

    REPLY
  • Ccxiwy
    (2022-11-18 05:45:40Z)

    cytotec oral buy misoprostol 200mcg generic synthroid sale

    REPLY
  • Svpwvj
    (2022-11-20 05:00:37Z)

    zovirax 400mg uk order allopurinol 300mg sale buy zyloprim 100mg

    REPLY
  • Sirena Colombo
    (2022-11-21 20:17:19Z)

    แทงบาคาร่า

    บาคาร่าออนไลน์ เว็บบาคาร่าที่คนเล่นเยอะที่สุด เซ็กซี่บาคาร่า บาคาร่าSA เว็บบาคาร่าที่เชื่อถือได้ ครบจบทุกความต้องการที่ UFABET.

    REPLY
  • แทงบาคาร่า
    (2022-11-22 03:59:48Z)

    ดูหนังฟรี

    ละคร THAIPULSE เว็บไซต์ ดูหนัง หนังใหม่ ดูทีวีย้อนหลัง ละครช่อง3 ดูละครย้อนหลัง อันดับ1 ดูช่อง7 ละครใหม่ ช่องวัน 31 ล.

    REPLY
  • สมัครแทงบอลออนไลน์

    สมัครแทงบอล พนันบอลออนไลน์ แทงบอลเว็บตรง แทงบอลเดี่ยว แทงบอลชุด และยังมี คาสิโน บาคาร่า ทั้งหมดนี้ที่ เว็บพนันที่ดีที่สุด UFABET.

    REPLY
  • Brandi Myers
    (2022-11-22 04:44:14Z)

    บาคาร่า เว็บบาคาร่า ทางเข้าบาคาร่ามือถือ แทงบาคาร่าเว็บไหนดี เลือกสมัคร เว็บบาคาร่าดีที่สุด บาคาร่าSA บาคาร่าสายฟ้า บาคาร่าออนไลน์.

    บาคาร่าเว็บตรงไม่ผ่านเอเย่นต์

    REPLY
  • Barbara Murphy
    (2022-11-22 07:13:33Z)

    บาคาร่าออนไลน์ เว็บบาคาร่ายอดฮิต ทางเข้าบาคาร่ามือถือ สมัครเว็บตรงบาคาร่า บาคาร่าสด เว็บบาคาร่า สมัครบาคาร่า.

    สมัครบาคาร่า

    REPLY
  • Jamie Carden
    (2022-11-22 10:49:50Z)

    สมัครแทงบอล

    เว็บแทงบอล แทงบอล สมัครแทงบอลเว็บไหนดี แทงบอล เว็บบอล เว็บแทงบอลที่ดีที่สุด แทงบอลราคาน้ำดีที่สุด แทงบอลให้ได้เงิน ต้องที่ UFABET.

    REPLY
  • Maria Childs
    (2022-11-22 20:41:41Z)

    slotpg

    สล็อต สล็อตออนไลน์มือถือ สล็อตเว็บดัง สล็อตเว็บที่ดีที่สุด สล็อตเว็บอันดับ1 เกมส์สล็อตฟรีเครดิต เกมส์สล็อตเล่นยังไง.

    REPLY
  • 토토사이트
    (2022-11-23 02:34:32Z)

    If you are looking for a powerball site optimized for EOS powerball betting, you can use a good playground verification company. Provide the best bet provider live using a professional betting site verification solution. You don't have to worry about finding a safe playground alone anymore.

    REPLY
  • Angela Moore
    (2022-11-23 06:50:40Z)

    คาสิโนออนไลน์ คาสิโนออนไลน์ดีที่สุด เกมคาสิโนออนไลน์ เดิมพันคาสิโน ทางเข้าคาสิโน สมัครคาสิโนออนไลน์ UFABET ufabetเว็บตรงทางเข้า.

    คาสิโน

    REPLY
  • Lidia Mendez
    (2022-11-23 10:43:53Z)

    UFABET เว็บตรงไม่ผ่านเอเย่นต์เว็บไหนดี UFABETมือถือ UFABETไม่ผ่านเอเย่นต์ UFABETยอดนิยม ufabetเว็บตรงทางเข้า ufabetอันไหนดีสุด.

    UFABETสมัคร

    REPLY
  • Picbww
    (2022-11-23 23:35:56Z)

    order baclofen 10mg generic pfizer viagra viagra 100mg

    REPLY
  • Hghpex
    (2022-11-26 05:42:03Z)

    order cialis online cost cialis 20mg ketorolac pills

    REPLY
  • cookie clicker
    (2022-11-27 23:16:57Z)

    The original idle game where you bake cookies to rule the universe!

    REPLY
  • Ozouec
    (2022-11-28 12:48:35Z)

    purchase colchicine methotrexate 5mg tablet order methotrexate generic

    REPLY
  • Yidxax
    (2022-11-30 15:10:51Z)

    buy cozaar 50mg pills buy imitrex without prescription sumatriptan 25mg for sale

    REPLY
  • Zlylmb
    (2022-12-02 00:29:50Z)

    dutasteride canada flomax 0.4mg uk order zofran 4mg pills

    REPLY
  • Iqlksu
    (2022-12-03 07:54:47Z)

    aldactone 100mg ca oral aldactone order fluconazole 100mg pills

    REPLY

Top News: Business