Yahoo Finance Hamilton Beach Brands Holding's (NYSE:HBB) investors will be pleased with their impressive 101% return over the last year
Hamilton Beach Brands Holding Company (NYSE:HBB) shareholders might be concerned after seeing the share price drop 13% in the last month. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 94% in that time.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
View our latest analysis for Hamilton Beach Brands Holding
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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last year Hamilton Beach Brands Holding grew its earnings per share (EPS) by 115%. It's fair to say that the share price gain of 94% did not keep pace with the EPS growth. So it seems like the market has cooled on Hamilton Beach Brands Holding, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 9.14.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
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. It might be well worthwhile taking a look at our free report on Hamilton Beach Brands Holding's earnings, revenue and cash flow.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Hamilton Beach Brands Holding's TSR for the last 1 year was 101%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that Hamilton Beach Brands Holding shareholders have received a total shareholder return of 101% over one year. That's including the dividend. That's better than the annualised return of 4% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Hamilton Beach Brands Holding better, we need to consider many other factors. Even so, be aware that Hamilton Beach Brands Holding is showing 1 warning sign in our investment analysis , you should know about...
Hamilton Beach Brands Holding is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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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.
