Van Lanschot Kempen (AMS: VLK) shareholders must be satisfied with their 88% return


It hasn’t been the best quarter for Van Lanschot Kempen SA (AMS: VLK), since the stock price fell 14% during this period. On the positive side, the share price has risen over the past half-decade. During that time, it rose 32%, which is not bad, but is below the market return of 74%.

Check out our latest review for Van Lanschot Kempen

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. An imperfect but straightforward way to consider how a company’s market perception has changed is to compare the evolution of earnings per share (EPS) with the movement of the share price.

During the five years of share price growth, Van Lanschot Kempen achieved compound earnings per share (EPS) growth of 4.7% per year. This EPS growth is reasonably close to the 6% average annual increase in the share price. This suggests that the sentiment of the market around the company has not changed much during this time. On the contrary, the share price roughly followed the growth of BPA.

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

ENXTAM: VLK Growth in earnings per share July 20, 2021

We love that insiders have bought stocks in the past twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide for the business. Before buying or selling a stock, we always recommend a careful review of historical growth trends, available here.

What about dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. While the share price return reflects only the change in the share price, the TSR includes the value of dividends (assuming they have been reinvested) and the benefit of any capital increase or spin- off updated. It’s fair to say that the TSR gives a more complete picture of dividend paying stocks. In the case of Van Lanschot Kempen, he has a TSR of 88% for the past 5 years. This exceeds the return on its share price that we mentioned earlier. The dividends paid by the company thus boosted the total shareholder return.

A different perspective

We are pleased to report that the shareholders of Van Lanschot Kempen received a total shareholder return of 32% over one year. This includes the dividend. This is better than the 13% annualized return over half a decade, which implies that the company has been doing better recently. At the best of times, this can portend real business momentum, implying that now may be a good time to dig deep. It is always interesting to follow the evolution of stock prices over the long term. But to understand Van Lanschot Kempen better, there are many other factors to consider. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for Van Lanschot Kempen you should know.

Van Lanschot Kempen isn’t the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.

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

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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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