Those who invested in Sif Holding (AMS:SIFG) five years ago are up 28%
Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
Check out our latest analysis for Sif Holding
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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, Sif Holding moved from a loss to profitability. That's generally thought to be a genuine positive, so investors may expect to see an increasing share price.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Sif Holding has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Sif Holding will grow revenue in the future.
We've already covered Sif Holding's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Sif Holding's TSR of 28% over the last 5 years is better than the share price return.
Investors in Sif Holding had a tough year, with a total loss of 2.7%, against a market gain of about 0.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 5% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Sif Holding better, we need to consider many other factors. For example, we've discovered 2 warning signs for Sif Holding (1 is a bit unpleasant!) that you should be aware of before investing here.
For those who like to find winning investments this free list of undervalued 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 Dutch exchanges.
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.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
Warren Buffett Warns Inflation is a ‘Gigantic Corporate Tapeworm' That Consumes Investment Capital and Distorts Corporate Earnings
Warren Buffett, the chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), has long been known for his ability to distill complex financial realities into clear, memorable guidance for investors. In his 1981 shareholder letter, Buffett used a vivid metaphor to describe the impact of inflation on corporate America, likening it to a 'gigantic corporate tapeworm' that consumes investment capital regardless of a company's health or profitability. His analysis remains relevant for investors and business leaders navigating periods of high inflation and economic uncertainty. Buffett explained that, in an inflationary environment, businesses are forced to allocate ever-increasing amounts of capital just to maintain their existing operations. Even when a company reports profits, those earnings may be illusory if all available cash must be reinvested in receivables, inventory, and fixed assets simply to keep pace with prior-year volumes. As he phrased it, 'Whatever the level of reported profits (even if nil), more dollars for receivables, inventory and fixed assets are continuously required by the business in order to merely match the unit volume of the previous year. The less prosperous the enterprise, the greater the proportion of available sustenance claimed by the tapeworm.' More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate Ditch 'Basic' Nvidia and Buy This 'Unique' Chip Stock Instead Tesla Earnings, Powell Speech and Other Can't Miss Items this Week Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! This perspective is rooted in Buffett's decades of experience as an investor and business owner. Having guided Berkshire Hathaway through multiple economic cycles, Buffett has consistently emphasized the importance of real, inflation-adjusted returns over nominal gains. His warning that 'a business earning 8% or 10% on equity often has no leftovers for expansion, debt reduction or 'real' dividends' highlights the risk that inflation can erode the value of reported profits, leaving little for shareholders after essential reinvestments. Buffett also cautioned investors to be wary of dividend policies that mask a company's inability to generate true surplus cash. He noted that some companies rely on dividend reinvestment plans or issue new shares to fund payouts, effectively robbing Peter to pay Paul. In his words, 'Beware of 'dividends' that can be paid out only if someone promises to replace the capital distributed.' This insight remains pertinent as companies today continue to navigate shareholder expectations for returns amid fluctuating economic conditions. The authority behind Buffett's analysis comes not only from his track record but also from his transparent communication style. His annual letters have become essential reading for investors seeking to understand both the mechanics of business and the broader economic forces at play. The 1981 letter, in particular, stands out for its candid assessment of the challenges posed by inflation and its implications for capital allocation and shareholder value. As inflationary pressures periodically resurface in global markets, Buffett's metaphor of the corporate tapeworm serves as a timeless reminder: real economic progress depends not just on reported profits, but on a business's ability to generate and retain value after accounting for the silent costs of inflation. On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Business Upturn
2 hours ago
- Business Upturn
Liverpool seal Hugo Ekitike deal worth €95 million from Eintracht Frankfurt
Liverpool have sealed the signing of a new striker from Eintracht Frankfurt. By Ravi Kumar Jha Published on July 21, 2025, 18:43 IST Liverpool have sealed the signing of a new striker from Eintracht Frankfurt. The Reds aren't stopping this summer transfer window as they have bought one midfielder from Bayer Leverkusen, namely Florian Wirtz (€100 million+ deal) and now a striker from Frankfurt named Hugo Ekitike (€95 million deal). The deal is done and sealed, only the official announcement is pending. Liverpool were the champions of PL 2024/25 season under Arne Slot and now the manager wants a complete change of the squad to think of the future. Liverpool are not slowing down in the summer transfer window, having sealed the signing of highly-rated striker Hugo Ekitike from Eintracht Frankfurt in a blockbuster €95 million deal. While the official announcement is still pending, the deal is understood to be done and dusted. Ekitike becomes Liverpool's second major signing of the window following the €100 million+ arrival of midfielder Florian Wirtz from Bayer Leverkusen. The two signings signal the club's clear intent to reshape their squad for the future under Arne Slot. Slot, who led the Reds to a sensational Premier League title in the 2024/25 season, is aiming to build a new era at Anfield. The Dutch manager is reportedly pushing for a younger, dynamic squad capable of dominating for years to come, and Ekitike's addition fits perfectly into that vision. The French forward impressed in the Bundesliga with his pace, technical ability, and eye for goal, attracting interest from several top clubs before Liverpool swooped in to secure his signature. Ahmedabad Plane Crash Ravi kumar jha is an undergraduate student in Bachelor of Arts in Multimedia and Mass Communication. A media enthusiast who has a strong hold on communication and he also has a genuine interest in sports. Ravi is currently working as a journalist at
Yahoo
3 hours ago
- Yahoo
Bank of America Corporation (BAC): I Don't Know If Buffett Or The Number Two Sold Bank Of America, Says Jim Cramer
We recently published . Bank of America Corporation (NYSE:BAC) is one of the stocks Jim Cramer recently discussed. Bank of America Corporation (NYSE:BAC) is one of the largest domestic banks in America. Its shares have gained 6.6% year-to-date and have recovered all losses since President Trump's Liberation Day tariff announcement. However, the stock dipped by 3.6% in July after HSBC's downgrade. Yet, soon, the shares would rise after Bank of America Corporation (NYSE:BAC)'s latest earnings report. Another driving factor behind the somewhat weak share price performance is Berkshire Hathaway's decision to sell the stock to reduce its investment by more than 30%. Cramer discussed whether Warren Buffett was behind the investment firm's decision to sell Bank of America Corporation (NYSE:BAC): 'I know, I mean I was thinking about the fact that they're selling Bank of America, is that Buffett selling Bank of America or like the number two selling Bank of America.' A professional banker providing consultation to a customer in the security of his office. Previously, Cramer commented in detail about Bank of America Corporation (NYSE:BAC)'s performance after the Berkshire selling: 'Let me ask you something. Why is Bank of America stock still just selling at 13 times earnings? The franchise has been putting up consistently terrific earnings. Brian Moynihan's doing a great job. I think the stock's cheap because of the relentless selling from Berkshire Hathaway. One day, Berkshire will finish selling, and when that happens, you'll be paying a much higher price-to-earnings multiple for this fine bag. My advice: Don't wait for them to finish. There'll be a good quarter.' While we acknowledge the potential of BAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data