Investing in Eagers Automotive (ASX:APE) five years ago would have delivered you a 185% gain

Simply Wall St.01-04

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. For example, the Eagers Automotive ...

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For example, the Eagers Automotive ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/investing-in-eagers-automotive-asxape-five-years-ago-would-h-1\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Investing in Eagers Automotive (ASX:APE) five years ago would have delivered you a 185% gain</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInvesting in Eagers Automotive (ASX:APE) five years ago would have delivered you a 185% gain\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-01-04 10:12 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/investing-in-eagers-automotive-asxape-five-years-ago-would-h-1><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>When you buy a stock there is always a possibility that it could drop 100%.  But on a lighter note, a good company can see its share price rise well over 100%.  For example, the Eagers Automotive ...</p>\n\n<a href=\"https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/investing-in-eagers-automotive-asxape-five-years-ago-would-h-1\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7143","symbol_name":"汽车零售","start_time":0,"source_url":"https://simplywall.st/stocks/au/retail/asx-ape/eagers-automotive-shares/news/investing-in-eagers-automotive-asxape-five-years-ago-would-h-1","article_id":"2400384548","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9551705-choice2-main-header/1585186844427"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2400384548","pubTimestamp":1704334339,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7143":"汽车零售","APE.AU":"Eagers Automotive Ltd","BK4108":"电影和娱乐","APE":"AMC Entertainment Preferred"},"translate_title":"五年前投资Eagers Automotive（ASX：APE）会给你带来185%的收益","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"APE":1,"APE.AU":1},"content_text":"When you buy a stock there is always a possibility that it could drop 100%.  But on a lighter note, a good company can see its share price rise well over 100%.  For example, the Eagers Automotive Limited (ASX:APE) share price has soared 130% in the last half decade. Most would be very happy with that.   It's down 2.8% in the last seven days.       So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.   Check out our latest analysis for Eagers Automotive   While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational.  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.   During the five years of share price growth, Eagers Automotive moved from a loss to profitability.   Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.   The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). ASX:APE Earnings Per Share Growth January 4th 2024 We consider it positive that insiders have made significant purchases in the last year.  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 Eagers Automotive's earnings, revenue and cash flow.  What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock.  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.  In the case of Eagers Automotive, it has a TSR of 185% for the last 5 years. That exceeds its share price return that we previously mentioned.  This is largely a result of its dividend payments!  A Different Perspective It's good to see that Eagers Automotive has rewarded shareholders with a total shareholder return of 33% in the last twelve months.   That's including the dividend.     Since the one-year TSR is better than the five-year TSR (the latter coming in at 23% per year), it would seem that the stock's performance has improved in recent times.  In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper.        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.   Consider risks, for instance. Every company has them, and we've spotted   2 warning signs for Eagers Automotive   you should know about.     Eagers Automotive is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.Valuation is complex, but we're helping make it simple.Find out whether Eagers Automotive 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 AnalysisHave 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.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2400384548"}