The Cohort (LON – CHRT) Share value Is Up seventy two% And Shareholders …

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Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. To wit, the Cohort share price has climbed 72% in five years, easily topping the market decline of 14% (ignoring dividends). However, more recent returns haven’t been as impressive as that, with the stock returning just 42% in the last year , including dividends .

View our latest analysis for Cohort

About Cohort
Cohort or cohortes may refer to:

Cohort (educational group), a group of students working together through the same academic curriculum
Cohort (floating point), a set of different encodings of the same numerical value
Cohort (military unit), the basic tactical unit of a Roman legion
Cohort (statistics), a group of subjects with a common defining characteristic, for example age group
Cohort (taxonomy), in biology, one of the taxonomic ranks
Cohort study, a form of longitudinal study used in medicine and social science
Cohort analysis, a subset of behavioral analytics that takes the data from a given data set
Cohort Studios, a video game development company
Generational cohort, an aggregation of individuals who experience the same event within the same time interval
“Cohort”, a disc golf putter by Infinite Discs

The Cohort (LON:CHRT) Share Price Is Up 72% And Shareholders …

About (LON:CHRT)

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 five years of share price growth, Cohort achieved compound earnings per share (EPS) growth of 11% per year. So the EPS growth rate is rather close to the annualized share price gain of 11% per year. That suggests that the market sentiment around the company hasn’t changed much over that time. Indeed, it would appear the share price is reacting to the EPS.

The Cohort (LON:CHRT) Share Price Is Up 72% And Shareholders …

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

earnings-per-share-growth
AIM:CHRT Earnings Per Share Growth July 31st 2020

We know that Cohort has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Cohort’s TSR for the last 5 years was 89%, which exceeds the share price return mentioned earlier. And there’s no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It’s nice to see that Cohort shareholders have received a total shareholder return of 42% over the last year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 14% 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. If you would like to research Cohort in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

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

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This article by Simply Wall St is general in nature. 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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