Investors in Vp (LON:VP.) have unfortunately lost 26% over the last three years
Vp plc (LON:VP.) shareholders should be happy to see the share price up 13% in the last month. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 38% in the last three years, significantly under-performing the market.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).
Vp saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Extraordinary items contributed to this situation. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free interactive report on Vp's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Vp's TSR for the last 3 years was -26%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
Vp shareholders are down 7.1% for the year (even including dividends), but the market itself is up 4.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 1.4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. Case in point: We've spotted 2 warning signs for Vp you should be aware of, and 1 of them doesn't sit too well with us.
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap 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 British 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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New York Times
an hour ago
- New York Times
Close Trump Allies Sponsored the Military Parade, Raising Ethical Concerns
Saturday's military parade in Washington celebrating the 250th anniversary of the U.S. Army was sponsored by at least four brands that have strong financial and political ties to President Trump, raising questions about whether the event benefited his allies and supporters. Attendees who sought relief from the sweltering heat on the National Mall found free cans of a new energy drink brand sponsored by Dana White, who is the chief executive of the Ultimate Fighting Championship and one of Mr. Trump's staunchest allies. Palantir, the data analysis and technology firm whose contracts with the federal government are expanding, and Coinbase, a cryptocurrency firm that donated to the president's inauguration, also sponsored the event. Oracle, a database company whose co-founder is a close friend of Mr. Trump's, received a shout-out on Saturday as a sponsor. U.F.C. was mentioned as a sponsor during the military procession and on the event's website, but its spokesman said in an email statement that the company was not a corporate sponsor and that Mr. White had supported the program in his personal capacity. Federal regulations prohibit the use of public office for the private gain of officeholders or their friends, relatives or nongovernmental affiliates, said Richard W. Painter, who served as the chief ethics lawyer in the White House Counsel's Office under President George W. Bush. 'The parade is being used for advertising by these entities with close business ties to the president,' Mr. Painter said in an interview. 'You're in a situation where the U.S. government has been used to endorse a product.' Want all of The Times? Subscribe.
Yahoo
an hour ago
- Yahoo
I tried 2 ways of investing in bitcoin. One thrived and one failed miserably, teaching me a valuable lesson.
Last December, I decided to add bitcoin exposure to my portfolio through an ETF and a single stock. The iShares Bitcoin Trust ETF has climbed double digits, while Semler Scientific has underperformed. If you're a crypto beginner looking to get exposure to bitcoin, I recommend sticking to ETFs. Back in December of 2024, I decided to hop aboard the bitcoin train and add some crypto exposure to my portfolio. Markets were flush off of the recent Trump victory, there were whispers of a national bitcoin reserve, and bitcoin had recently broken the $100,000 threshold for the first time. The cryptocurrency had gone mainstream enough for late adopters like myself to deem it investable. For my first foray into bitcoin, I purchased a share of Blackrock's iShares Bitcoin Trust Trust (IBIT). I later added a share of Semler Scientific (SMLR), a healthcare technology company that holds bitcoin on its balance sheet. I wanted to try multiple methods of investing in bitcoin. In hindsight, I realize I committed the classic retail investor impulse: buying in because of FOMO. Sure, positive investor sentiment led to gains in bitcoin, as well as the ETF I bought that was designed to track the crypto. But my stock purchase proved ill-timed. Almost six months later, bitcoin has crossed new all-time-highs, and I have mixed feelings on my investment. I opted to buy IBIT instead of actual spot bitcoin because it was a more accessible way to get exposure. I didn't want the hassle of setting up a Coinbase account. Plus, buying a single share in an ETF was more psychologically appealing than buying a tiny fraction of a bitcoin (I did not have a spare $100,000 or the risk tolerance to buy an entire bitcoin). The performance has been encouraging. Year-to-date, IBIT is up about 14%, outpacing a 12% gain for bitcoin itself. It's done its job of tracking the crypto, and even added a little extra. And it's far outperformed the S&P 500, which is up just 2% in 2025. ETFs can experience slight tracking differences due to management fees, operational costs, and the timing of inflows and outflows. But if you want a rough proxy of bitcoin performance without actually owning the underlying asset, IBIT gets the job done. A year and a half over its launch, IBIT has gained incredible popularity, growing to over $70 billion in assets under management. Robert Cannon, a financial advisor at Experity Wealth with a specialization in alternative assets, recommends his bitcoin-curious clients to start with the ETF. "It's the easiest, cleanest representation of bitcoin, compared to some of the other strategies that are a bit esoteric," Cannon told me. The ETF wrapper has really helped bitcoin adoption take off in the last year, Rahul Sen Sharma, president and co-CEO at the custom index provider Indxx, told me. Sharma's seeing a surge in interest for bitcoin and digital asset ETFs, and he believes Trump's continued support for crypto will pave the way for more mainstream adoption. Getting bitcoin exposure through other methods was indeed more esoteric — and much less profitable. I added Semler Scientific to my portfolio on January 8, 2025, and it's down more than 40% since then. There's a growing trend among companies to add bitcoin to their balance sheets, with Strategy, Tesla, and GameStop being one of the most prominent examples. The president's own Trump Media and Technology Group has recently raised $2.5 billion to buy bitcoin. Semler Scientific started adding bitcoin to its balance sheet in May of last year and now holds over 4,000 bitcoins. It sounds like a good idea in theory: holding bitcoin as a reserve asset could be a hedge against inflation and dollar weakness, and could also lead to capital appreciation as bitcoin takes off. Some companies like Strategy have had tremendous success. The firm has accumulated over half a million bitcoins, and the stock has outperformed the underlying crypto year-to-date. However, it's hard to replicate the scale and expertise of Strategy. While many of Cannon's clients often inquire about bitcoin treasury companies like Strategy, he usually recommends they stick to the basics with an ETF. There were also company-specific headwinds for Semler Scientific. The company had been under investigation from the Department of Justice for allegedly misleading claims about one of its medical devices. My takeaway from the experience is that buying a single stocks as a bitcoin proxy is probably not a good idea. When you buy into a bitcoin treasury company, you're also inheriting all of its company-specific risks. That includes everything from management decisions and financial health to legal exposure, product performance, and market sentiment around the core business. As a result, the benefits of diversification with bitcoin are watered down. If you're looking for bitcoin exposure, either buying the real thing or a spot ETF is your best bet. Maybe the strategy from here on out is to close out of my position in SMLR and do some tax-loss harvesting this year. Read the original article on Business Insider Sign in to access your portfolio
Miami Herald
2 hours ago
- Miami Herald
Veteran analyst sends surprising message on stocks, bonds, and gold
The stock market rally has been impressive. Since President Donald Trump paused most reciprocal tariffs on April 9, only days after announcing them, stocks have soared. The S&P 500 has gained about 20%, while the tech-stock heavy Nasdaq Composite is up 27%. Those returns in such a short span significantly outpace the average 10% annual return for stocks since 1928. Stocks haven't been the only winner. Gold has also notched impressive returns this year. The yellow metal has rallied 30% in 2025 as investors have sought to insulate risk amid growing economic concerns surrounding debt and the impact of tariffs on inflation. Related: Legendary fund manager sends blunt 3-word message on economy The one big disappointment this year: Treasury bonds. They've tumbled, sending bond yields soaring, as global investors have soured on financing America's insatiable appetite for spending. The market action has captured the attention of many, including veteran commodities and futures analyst Carley Garner. Garner has been professionally navigating these markets for twenty years, and her track record includes accurately predicting the stock rally in 2023 and last year's decline in oil prices. Garner updated her outlook on stocks, gold, and bonds, and her takeaway may surprise rally since the lows in early April likely surprised many, given significant economic risks remain. While inflation has retreated below 3% from over 8% in 2022, price increases over the past years have cash-strapped consumers, causing them to shift spending from discretionary purchases to essentials. Related: Bank of America unveils surprising Fed interest rate forecast for 2026 The problem has been compounded by an uptick in unemployment, which has increased to 4.2% from 3.4% in 2023, partly due to higher interest rates designed to crimp inflation. According to Challenger, Gray, & Christmas, U.S. companies have laid off 696,309 workers this year through May, up 80% from one year ago. The situation isn't likely to get much better for workers. While Trump paused many reciprocal tariffs in April, key tariffs remain, including a 25% tariff on Canada and Mexico and autos, a 10% tariff on all imports, and 30% tariff on China (total tariffs on China, including those put in place during President Trump's first term exceed 50%). The remaining tariffs, and potential for more after the 90-day pause expires, could fuel inflation later this year, particularly in retail, which sources everything from clothing to electronics from overseas. The risk of inflation alongside job losses suggests America could go headlong into a period of stagflation or recession. Despite those risks, the S&P 500 and Nasdaq Composite have notched remarkable gains. Investors who quickly sold amid tariff announcements earlier this year have been left behind, and as a result, they're buying every dip to regain their exposure. One major exception? Warren Buffett. The Oracle of Omaha has increased Berkshire Hathaway's cash position, choosing to collect guaranteed fixed income from T-bills rather than leap back into the stock market amid the uncertainty. Exiting the first quarter, Warren Buffett's cash stockpile eclipsed $347 billion, a record, and more than double the levels exiting 2023. The rallies in stocks and gold may continue, but like Buffett, Carley Garner doesn't see the risk-to-reward as overly compelling in stocks. She's also become bearish on gold relative to bonds, given that gold has moved significantly higher and, unlike bonds, doesn't pay dividends. "While I believe the S&P 500 can easily reach 6300 to 6400, the downside risk might be outsized relative to the potential reward," wrote Garner on TheStreet Pro. "Since 1928, the S&P 500 has returned an average annual rate of 10%; however, in recent years, the average return has been abnormally high, at approximately 14%. There is a good chance that, like the dot-com era, we have pulled forward gains and could be on the verge of a "returnless" market in the coming years." Garner points to a key measure favored by Warren Buffett regarding stock market valuation as evidence that stocks are over their skis. More Experts: Fed official sends strong message about interest-rate cutsBillionaire fund manager sends surprising message on trade deficitHedge-fund manager sees U.S. becoming Greece "The Warren Buffett Indicator measures the total stock market value vs. the GDP," wrote Garner. "Since 1950, the stock market has only been this overstretched a few other times. Not surprisingly, the dot-com bubble was one of those times. Historically, this indicator has not been the time to hit the gas on risk assets. It has been the opposite." The arguable overvaluation of stocks could mean the risk of a reckoning is high enough to concentrate on other assets. However, gold may not be the best bet, given it's already made a big move higher. Instead, it's Treasury bonds that Garner believes offer the best chance for upside. "There is only one [of these assets] near a two-decade low in valuation: Treasuries," writes Garner. "Except for some forms of real estate, it is the only asset that yields an attractive income stream. Lastly, Treasuries are the least risky asset class in the world but the market is treating the securities as anything but." Garner points out that people were flocking to own bonds with paltry yields only five years ago. Now, they're shunning yields near 4.5%. Many are hesitant to own bonds despite the high yields, fearing that bonds will continue to drop, sending yields even higher, as the US debt load rises. While it's true that lower bond values could mean short-term losses, Garner views the risk of a US default as unlikely, suggesting that those holding Treasuries to maturity will be fine, and pocket healthy income along the way. "Historically, there have been two other instances in history when stocks were as overvalued as they are now relative to bonds. Or, alternatively, bonds were this undervalued relative to stocks," wrote Garner. "Such opportunities have only arisen once every two decades, and they have proven to be significant inflection points in both stocks (the beginning of prolonged underperformance) and bonds (the start of a period of capital gains to enhance interest earned). This metric has been similarly favoring bonds since the initial collapse in 2023, so instant satisfaction shouldn't be expected, but patience will likely pay off." Related: Veteran fund manager issues dire stock market warning The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
