The five-year decline in earnings for ALS ASX:ALQ) isn't encouraging, but shareholders are still up 92% over that period

Simply Wall St.09-25

ALS Limited (ASX:ALQ) shareholders might be concerned after seeing the share price drop 13% in the last month. Looking further back, the stock has generated good profits over five years. After all...

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After all...</p>\n\n<a href=\"https://simplywall.st/stocks/au/commercial-services/asx-alq/als-shares/news/the-five-year-decline-in-earnings-for-als-asxalq-isnt-encour\">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>The five-year decline in earnings for ALS ASX:ALQ) isn't encouraging, but shareholders are still up 92% over that period</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\">\nThe five-year decline in earnings for ALS ASX:ALQ) isn't encouraging, but shareholders are still up 92% over that period\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-25 11:39 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/au/commercial-services/asx-alq/als-shares/news/the-five-year-decline-in-earnings-for-als-asxalq-isnt-encour><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>ALS Limited (ASX:ALQ) shareholders might be concerned after seeing the share price drop 13% in the last month.    Looking further back, the stock has generated good profits over five years.  After all...</p>\n\n<a href=\"https://simplywall.st/stocks/au/commercial-services/asx-alq/als-shares/news/the-five-year-decline-in-earnings-for-als-asxalq-isnt-encour\">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":"ALQ.AU","symbol_name":"ALS LTD","start_time":0,"source_url":"https://simplywall.st/stocks/au/commercial-services/asx-alq/als-shares/news/the-five-year-decline-in-earnings-for-als-asxalq-isnt-encour","article_id":"2470528546","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/industry/9612012-choice1-main-header/1585186781062"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2470528546","pubTimestamp":1727235579,"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"ALS Limited ( ASX:ALQ ) shareholders might be concerned after seeing the share price drop 13% in the last month...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ALQ.AU":"ALS LTD"},"translate_title":"ALS ASX：ALQ)盈利五年来的下降并不令人鼓舞，但股东在此期间仍增长了92%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ALQ.AU":1},"content_text":"ALS Limited (ASX:ALQ) shareholders might be concerned after seeing the share price drop 13% in the last month.    Looking further back, the stock has generated good profits over five years.  After all, the share price is up a market-beating 68% in that time.      While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.   Check out our latest analysis for ALS   To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...'  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 five years of share price growth, ALS actually saw its EPS drop 40% per year.   Essentially, it doesn't seem likely that investors are focused on EPS.  Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead.  On the other hand, ALS' revenue is growing nicely, at a compound rate of 7.8% over the last five years.  It's quite possible that management are prioritizing revenue growth over EPS growth at the moment.      You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values). ASX:ALQ Earnings and Revenue Growth September 25th 2024 We consider it positive that insiders have made significant purchases in the last year.  Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business.   So it makes a lot of sense to check out what analysts think ALS will earn in the future (free profit forecasts).  What About Dividends? When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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 ALS, it has a TSR of 92% for the last 5 years. That exceeds its share price return that we previously mentioned.  The dividends paid by the company have thusly boosted the total shareholder return.  A Different Perspective We're pleased to report that ALS shareholders have received a total shareholder return of 23% over one year.   That's including the dividend.     That gain is better than the annual TSR over five years, which is 14%. Therefore it seems like sentiment around the company has been positive lately.  Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time.        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.   Like risks, for instance. Every company has them, and we've spotted   4 warning signs for ALS   (of which 1 makes us a bit uncomfortable!) you should know about.     ALS is not the only stock that insiders are buying. For those who like to find lesser know companies 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.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave 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":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"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":"4.29.1","shortVersion":"4.29.1","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/2470528546"}