You are currently viewing The 13% return this week takes OT Logistics’ (WSE:OTS) shareholders

The 13% return this week takes OT Logistics’ (WSE:OTS) shareholders

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. To wit, the OT Logistics S.A. (WSE:OTS) share price has flown 262% in the last three years. That sort of return is as solid as granite. Also pleasing for shareholders was the 38% gain in the last three months. But this could be related to the strong market, which is up 25% in the last three months.

The past week has proven to be lucrative for OT Logistics investors, so let’s see if fundamentals drove the company’s three-year performance.

Check out our latest analysis for OT Logistics

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

OT Logistics became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growthWSE:OTS Earnings Per Share Growth January 15th 2023

This free interactive report on OT Logistics’ earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It’s nice to see that OT Logistics shareholders have received a total shareholder return of 114% over the last year. That certainly beats the loss of about 2% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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 3 warning signs with OT Logistics (at least 1 which shouldn’t be ignored) , and understanding them should be part of your investment process.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

Valuation is complex, but we’re helping make it simple.

Find out whether OT Logistics is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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.

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