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. For example, the Knaus Tabbert AG (ETR:KTA) share price is up 57% in the last 1 year, clearly besting the market decline of around 8.1% (not including dividends). So that should have shareholders smiling. Knaus Tabbert hasn't been listed for long, so it's still not clear if it is a long term winner.

So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.

See our latest analysis for Knaus Tabbert

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Knaus Tabbert was able to grow EPS by 145% in the last twelve months. This EPS growth is significantly higher than the 57% increase in the share price. So it seems like the market has cooled on Knaus Tabbert, despite the growth. Interesting.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Knaus Tabbert has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

A Different Perspective

Knaus Tabbert shareholders should be happy with the total gain of 57% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 17% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Knaus Tabbert better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Knaus Tabbert (of which 2 are a bit unpleasant!) you should know about.

Of course Knaus Tabbert may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German 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.

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