Investors in Sygnia (JSE:SYG) have seen impressive returns of 278% over the past five years
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.
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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Over half a decade, Sygnia managed to grow its earnings per share at 15% a year. So the EPS growth rate is rather close to the annualized share price gain of 18% per year. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Sygnia's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Sygnia the TSR over the last 5 years was 278%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that Sygnia shareholders have received a total shareholder return of 58% over one year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 30% 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. It's always interesting to track share price performance over the longer term. But to understand Sygnia better, we need to consider many other factors. For example, we've discovered 2 warning signs for Sygnia that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African 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
7 hours ago
- Yahoo
Tariff Deals Spark Unusual Options Trading in Carrier Global Corp Stock
Carrier Global Corp. (CARR) stock is up today on news that the Trump Administration has made several Asian trade and tariff deals. That has sparked unusual out-of-the-money (OTM) CARR put options trading, signaling investor interest in the stock. CARR is up over 5% at $80.58 in midday trading, but the unusual options trading implies it may have further to go. A closer look shows it could be worth at least 18% more at $95 per share. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Down 10% Since Warren Buffett's Retirement News, Should You Buy the Dip in Berkshire Hathaway Stock? MSCI, the Index Company, Forecasts Strong Free Cash Flow, Looks Undervalued Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Moreover, the unusual put option trading highlights a good way to play CARR stock - shorting long-dated out-of-the-money (OTM) puts to set a lower buy-in price and generate income in the process. The unusual options trading in CARR puts can be seen in Barchart's Unusual Stock Options Trading Report today. It shows that over 15,000 put option contracts traded at the $75.00 put option strike price for expiry at the end of 2025 (149 days from now on Dec. 19, 2025). The premium received by short sellers of these puts is about $3.10 in the midpoint, or a 4.133% short-put yield (i.e., $3.10/$75.00) over 5 months. That works out to about 0.83% per month for 5 months. More importantly, it allows a potential investor in CARR stock to set a lower breakeven point, i.e., if CARR falls to $75.00 anytime during this period. For example, $75.00 - $3.10 = $71.90, which is almost 12% below today's price. That makes shorting these puts a great way to potentially invest in CARR stock. Its value could be significantly higher by then. Let's see why. Trade Deals and Growth Prospects In April, CARR took a hit as the Trump Administration began its aggressive campaign to raise tariff rates on American trading partners. Carrier Global Corp. manufactures refrigerated boxes and related transportation items, which are heavily used in global trade for HVAC and refrigerated applications. However, yesterday the Administration announced several Asian trade deals. It established a 15% tariff rate with Japan, securing one of America's largest trading partners in a strong trade agreement. According to reports, another deal with the Philippines has also been finalized. This augurs well for the possibility of further trade deals. After all, the Trump Administration's August 1 deadline to set deals seems to be hard and fast. As a result, things could be looking up for Carrier Global Corp. Moreover, last quarter, it said in its Q1 earnings release that it had fully mitigated the effect of tariffs on its business. The market may have been a little skeptical about this. In fact, the company reaffirmed its guidance for the year, despite sales having fallen 4% YoY in Q1. It guided that it expects to see sales of $23 billion (up from a prior estimate of $22.5 to $23 billion). This is higher than the $22.4 billion in sales last year. The recent news may imply that sales guidance could rise. That may be what is pushing CARR stock higher. Strong Free Cash Flow and FCF Margins On top of this, Carrier Global reaffirmed that it expects free cash flow (FCF) to range between $2.4 and $2.6 billion this year. That implies its FCF margin (FCF/sales) could rise. For example, given management's guidance on sales, we can project at least a 10.9% FCF margin over the next 12 months (NTM): $2.5b FCF /$23 billion sales = 10.9% FCF margin Given that analysts foresee sales ranging between $23 billion and $24.3 billion, or $23.65 billion NTM: $23.65 billion NTM sales x 10.9% FCF margin = $2.58 billion NTM FCF That is significantly higher than the $526 million in FCF it made over the last 12 months, according to Stock Analysis, and the $2.5 billion midpoint range of its guidance for 2025. This could push CARR stock higher. Target Prices for CARR Stock FCF Yield Target Price. For example, let's assume that the market will give Carrier Global stock at least a 3.0% FCF yield if Carr Global makes $2.5 billion FCF this year and $2.58 billion over the next 12 months: $2.58 billion FCF / 0.03 = $86 billion market value That works out to an increase of up to 26% over today's market cap of $68.37 billion, according to Yahoo! Finance: $86b /$68.37b mkt cap = 1.258 -1 = +25.8% upside In other words, CARR stock could be worth 25.8% more over the next 12 months: $80.58 price today x 1.258 = $101.37 target price Dividend Yield Target Price. Another way to value CARR stock is to use its historical dividend yield (and assume that the stock reverts to that mean yield). For example, Yahoo! Finance reports that its 5-year yield has averaged 1.12%, Seeking Alpha says it's been 1.11% and Morningstar reports 0.91%. So, the survey's historical mean is 1.04% over the past five years. Given that the company pays out an annual dividend per share (DPS) of 90 cents, we can forecast where the stock's price target: $0.90 / 0.0104 = $86.54 target price Upside: +7.4% However, it seems likely that CARR will raise its DPS next year. Assuming it raises the quarterly 22.5 cents DPS by 5%, here is the NTM DPS forecast: $0.225 + $0.225 + $0.23625 +$0.23625 = $0.9225 NTM DPS Therefore, the NTM price target is: $0.9225 / 0.0104 = $88.70 price target Upside = +10% Summary Price Target. As a result, using a FCF yield method, the price target is $101.37, and using a dividend yield metric, it's $88.70. That works out to an average price target of $95.04 per share, or +18% over today's price. This is higher than analysts' price targets, as the average of 19 analysts surveyed by shows $84.10 per share. However, this could change next week when the company releases its Q2 earnings results on July 29. The bottom line is that investors are getting bullish on CARR stock, given the recent trade deals and the company's outlook. Moreover, its price targets could rise if Carrier Global maintains or increases its sales and free cash flow (FCF) guidance in its Q2 results release. On the date of publication, Mark R. Hake, CFA 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
Yahoo
14 hours ago
- Yahoo
Warren Buffett's Favorite Money-Making Strategy is ‘Purchasing Fractional Interests in Easily-Identifiable Princes at Toad-Like Prices'
Warren Buffett, chairman and CEO of Berkshire Hathaway (BRK.B) (BRK.A), is celebrated for his candid reflections on both his successes and mistakes in the world of investing. In his 1981 shareholder letter, Buffett offered a characteristically honest assessment of his experience with corporate acquisitions, stating, 'We have tried occasionally to buy toads at bargain prices with results that have been chronicled in past reports. Clearly, our kisses fell flat. We have done well with a couple of princes — but they were princes when purchased. At least our kisses didn't turn them into toads. And, finally, we have occasionally been quite successful in purchasing fractional interests in easily-identifiable princes at toad-like prices.' This quote encapsulates a philosophy that has come to define Buffett's investment approach: the preference for acquiring high-quality businesses — 'princes' — at reasonable prices, rather than hoping to transform struggling companies — 'toads' — through managerial intervention or through optimism alone. Buffett's metaphor draws from the classic fairy tale, but its lesson is grounded in decades of real-world investing experience. It boils down to a simple idea: buy high-quality companies and let them continue to grow. Expanding on that core principle, it's better to buy a high-quality company at an 'ok' price than a bad company at a great price, because the quality company will ultimately deliver greater value, while the lower-quality company is likely to continue its decline. More News from Barchart NVDA Broken Wing Butterfly Trade Targets A Profit Zone Between 150 and 160 Is Opendoor Stock a Buy at New 52-Week Highs? Billionaire Peter Thiel is Betting Big on Stablecoins. Should You Buy the "MicroStrategy of Ethereum," Too? 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! Early in his career, Buffett was known for seeking out so-called 'cigar butt' investments — companies trading at deep discounts to their intrinsic value, often because of operational or industry challenges. While these bargains sometimes yielded quick profits, Buffett found that time was rarely on the side of a mediocre business. As he and his longtime partner, the late Charlie Munger, evolved Berkshire Hathaway's strategy, they shifted focus toward companies with durable competitive advantages, strong management, and the ability to compound earnings over long periods. Buffett's admission that his historical attempts to 'kiss toads' have rarely produced miracles is supported by both his own track record and broader market evidence. Numerous studies and post-mortems on corporate acquisitions have shown that turnarounds are difficult to execute and often fail to deliver the hoped-for returns. By contrast, investments in well-run, fundamentally sound businesses — especially when purchased at attractive prices — have consistently been the cornerstone of Berkshire Hathaway's long-term success. The final part of Buffett's quote — highlighting the success of buying 'fractional interests in easily-identifiable princes at toad-like prices' — speaks to another key element of his philosophy: the willingness to invest in minority stakes in great companies when full ownership is not feasible or prudent. This approach has led Berkshire to build substantial positions in firms like Coca-Cola, American Express, and Moody's, generating significant value for shareholders without the risks associated with full takeovers. Buffett's reflections remain highly relevant in today's markets, where the allure of turnaround stories and high-premium acquisitions continues to tempt corporate leaders and investors alike. His experience serves as a reminder that discipline, patience, and a focus on intrinsic business quality are more reliable paths to enduring success than the hope of miraculous transformations. In a world full of both princes and toads, Buffett's advice is clear: invest where the odds — and the underlying economics—are in your favor. 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
Yahoo
14 hours ago
- Yahoo
2 Vanguard ETFs That Can Turn $400 per Month Into Over $1.7 Million
Key Points The Vanguard S&P 500 ETF provides investors with exposure to the world's largest companies across every major industry sector. The Vanguard Dividend Appreciation ETF complements growth-oriented investments with a mix of value stocks and reliable dividend income. Both of these funds offer inexpensive management fees and can help turn small monthly contributions into millions over a long-term time horizon. 10 stocks we like better than Vanguard S&P 500 ETF › A common misconception about creating wealth is that you need to be an expert stock picker. While investing in individual companies can indeed generate significant savings, there are many other ways an investor can benefit from the appreciation of the stock market. One such way is through exchange-traded funds (ETFs). ETFs represent a basket of stocks and provide investors with passive exposure to specific industries or themes. Below, I'll detail two Vanguard ETFs that can help investors become millionaires while barely lifting a finger. 1. Vanguard S&P 500 ETF While Warren Buffett is primarily known for his successful stock picking abilities, the famous investor often expresses that most investors should simply buy into the S&P 500 index. While this sounds nice in theory, how can you actually do that? Well, the Vanguard S&P 500 ETF (NYSEMKT: VOO) has you covered. This fund provides investors with passive exposure to the companies that comprise the S&P 500. Not only does this help investors achieve a high degree of diversification, but it also mitigates downside risk as industries respond to news and economic shifts in different ways. One thing that makes this Vanguard ETF different than other S&P 500-themed funds is that it is weighted by market cap. This means that the companies with the largest market caps -- such as Nvidia, Microsoft, Apple, Berkshire Hathaway, or Eli Lilly -- have more of an influence on the fund's price movements relative to smaller companies. Per the graph above, the Vanguard S&P 500 ETF has generated a total return of 647% since its inception in 2010. This equates to 14.5% annually. Assuming these returns keep up, a $200 monthly investment can grow significantly over the course of a long-term time horizon. Timeline Long-Term Savings 10 Years $53,400 20 Years $279,078 30 Years $1,232,848 Calculations by author via 2. Vanguard Dividend Appreciation ETF The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is made up of companies that have increased their dividend payments over 10 years or more. This is important to understand, as inclusion in the index isn't guaranteed simply by offering a juicy dividend yield. Instead, members of the VIG index are companies that have proven to sustain their dividend payments while having the financial flexibility to increase them over time. I see this fund as a great complement to VOO since it offers a unique mix of growth and value stocks that serve as reliable sources of dividend income such as Visa, Broadcom, and Walmart. The fund's annual return since inception hovers right around 10%, which is slightly better than the long-run average return of the S&P 500 index. Assuming these returns keep up, a $200 monthly contribution can grow to roughly $450,000 over the course of 30 years. Keep these ideas in mind An important factor to consider when choosing an ETF is the expense ratio. With expense ratios of 0.03% and 0.05% for VOO and VIG, respectively, investors are paying less than $1 per $1,000 invested. While VOO and VIG can help make you a millionaire, it's important that investors consistently contribute to their positions on a frequent basis. Moreover, it's equally important to remember that building a seven-figure savings can take decades. The more important idea explored in this piece is that building wealth takes time, discipline, and patience. All told, I see both of these Vanguard funds as low-cost and low-effort ways to generate significant wealth. Should you invest $1,000 in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 ETF wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Adam Spatacco has positions in Apple, Eli Lilly, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Apple, Berkshire Hathaway, Microsoft, Nvidia, Vanguard Dividend Appreciation ETF, Vanguard S&P 500 ETF, Visa, and Walmart. The Motley Fool recommends Broadcom and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. 2 Vanguard ETFs That Can Turn $400 per Month Into Over $1.7 Million was originally published by The Motley Fool 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
