Intesa Sanpaolo's shareholders (BIT: ISP) posted growth of 18% last year

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "There is no doubt that an investment in the stock exchange is Emagazine.credit-suisse.com/app/art…1007 & lang = DE But not every stock you buy will perform as well as the market as a whole Intesa Sanpaolo S.p.A. (BIT: ISP) Share price rose 18%, but that's less than the broader return on the market. On the other hand, longer-term shareholders have had a tougher run, with the stock falling 7.6% in three years. "Data-reactid =" 27 "> There is no doubt that investing in the stock market is a really great way to build wealth, but not every stock you buy will perform as well as the overall market Intesa Sanpaolo S.p.A. (BIT: ISP) stock price rose 18%, but that's less than the broader return on the market. On the other hand, longer-term shareholders have had a tougher run, with the stock falling 7.6% in three years.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = " Check out our latest analysis for Intesa Sanpaolo "data-reactid =" 28 "> Check out our latest analysis for Intesa Sanpaolo

While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just the underlying business trend. One flawed but sensible way to assess how a company's mood has changed is to compare earnings per share (EPS) against the stock price.

Intesa Sanpaolo has even shrunk its earnings per share by 4.9% in the past twelve months.

The slight decline in EPS could be due to the fact that the company is currently focusing more on other aspects of the business. It makes sense to check some of the other fundamentals to get an explanation for the stock price rise.

We haven't seen Intesa Sanpaolo increase dividend payments yet, so the rate of return probably hasn't helped push the stock up. Rather, we assume that the 3.0% increase in sales could make more sense. After all, it's not necessarily a bad thing for a company to sacrifice profits today to make profits tomorrow (figuratively speaking).

In the image below you can see how income and sales have changed over time (click on the graph to see the exact values).

BIT: ISP Income Statement, January 4, 2020

<p class = "Canvas-Atom-Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Intesa Sanpaolo is a well-known stock with many stocks You can see what analysts are predicting for Intesa Sanpaolo interactively Graph of future earnings estimates, "data-reactid =" 46 "> Intesa Sanpaolo is a well-known stock with comprehensive analyst reporting, which provides an insight into future growth. Here you can see what analysts forecast for Intesa Sanpaolo interactively Graph of future earnings estimates.

What about dividends?

It is important to consider the total return of shareholders as well as the return on a particular share. The TSR is a yield calculation that takes into account the value of cash dividends (assuming that a dividend received was reinvested) and the calculated value of discounted capital increases and spin-offs. The TSR probably offers a more comprehensive picture of the return on a share. We find that Intesa Sanpaolo's TSR was 29% last year, which is better than the stock price return mentioned above. This is mainly due to the distribution of dividends!

Another perspective

<p class = "Canvas-Atom Canvas-Text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "It is nice to see that the shareholders of Intesa Sanpaolo received the text This is a 29% return for shareholders last year, including the dividend, which is better than the 7.2% annualized return in half a decade, which means the company has been doing better lately At best, this could be the case, which suggests a real business momentum that suggests that now is a good time to take a closer look at the issue, so a solid next step could be to take a look on Intesa Sanpaolo's dividend balance sheet free interactive diagram is a great place to start. "data-reactid =" 50 "> It's nice to see that Intesa Sanpaolo's shareholders achieved a total return of 29% last year. This includes the dividend. This is better than the annual return of 7, 2% in half a decade, which means the company has been doing better lately, and at best this could indicate real business momentum, which means that now is a good time to look into this topic in more detail the next step could be to take a look at Intesa Sanpaolo's dividend balance sheet free An interactive graph is a great place to start.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Of course You could find a fantastic investment by looking elsewhere. So take a look free List of companies that we expect will increase earnings."data-reactid =" 51 "> Of course You could find a fantastic investment by looking elsewhere. So take a look free List of companies that we expect will increase earnings.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "Please note that the market returns mentioned in this article reflect the market-weighted average returns on stocks currently traded on IT exchanges."data-reactid =" 52 ">Please note that the market returns mentioned in this article reflect the market-weighted average returns on stocks currently traded on IT exchanges.

<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – sm" type = "text" content = "If you discover an error that justifies a correction, please contact the editorial team at editorial-team@simplywallst.com, This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading."data-reactid =" 53 ">If you discover an error that justifies a correction, please contact the editorial team at editorial-team@simplywallst.com. This article from Simply Wall St is general in nature. It is not a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Simply Wall St has no position in the stocks mentioned.

We strive to provide you with long-term, focused research analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Thank you for reading.