Spark New Zealand Limited (NZSE:SPK) shareholders have experienced a rollercoaster ride in the last quarter, with the share price dropping by 11%. However, looking at the bigger picture, the company has delivered impressive returns over the past five years, outperforming the market by 30%.
Analyzing the company’s performance over the years, it is evident that while the share price growth has been steady at 5% per year, the earnings per share (EPS) growth has been slightly slower at 3.9% per year. This indicates that investors have a positive sentiment towards the company, possibly due to its consistent track record of earnings growth.
In addition to share price returns, investors should also consider the total shareholder return (TSR), which includes dividends and other factors. In the case of Spark New Zealand, the TSR over the last five years stands at an impressive 78%, surpassing the share price return.
Despite a slight dip in the market in the past year, long-term investors in Spark New Zealand have seen a solid annual return of 12% over five years. This indicates that the company has shown sustainable growth potential, making the current sell-off a potential opportunity for investors.
While market conditions can impact share prices, it is essential to consider other factors such as risks. Investors should conduct thorough research before making any investment decisions. If you are interested in exploring growing companies with insider buying, don’t miss out on our free list.
Overall, Spark New Zealand’s performance reflects a mix of market sentiment, earnings growth, and shareholder returns, making it a stock worth keeping an eye on for potential opportunities.