The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. To wit, the Jardine Cycle & Carriage Limited (SGX:C07) share price is 64% higher than it was a year ago, much better than the market return of around 1.8% (not including dividends) in the same period. That's a solid performance by our standards! However, the stock hasn't done so well in the longer term, with the stock only up 7.7% in three years.

Since it's been a strong week for Jardine Cycle & Carriage shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Jardine Cycle & Carriage

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).

During the last year Jardine Cycle & Carriage grew its earnings per share (EPS) by 98%. This EPS growth is significantly higher than the 64% increase in the share price. Therefore, it seems the market isn't as excited about Jardine Cycle & Carriage as it was before. This could be an opportunity. This cautious sentiment is reflected in its (fairly low) P/E ratio of 9.99.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We know that Jardine Cycle & Carriage has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Jardine Cycle & Carriage's TSR for the last 1 year was 71%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Jardine Cycle & Carriage has rewarded shareholders with a total shareholder return of 71% in the last twelve months. That's including the dividend. There's no doubt those recent returns are much better than the TSR loss of 0.3% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. For instance, we've identified 1 warning sign for Jardine Cycle & Carriage that you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies 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 SG exchanges.

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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.