Goodfellow Inc. (TSE:GDL) Shareholders Enjoy 31% CAGR Over Five Years, But Dividend Payments Contribute to Total Shareholder Return.

Goodfellow Inc. (TSE:GDL) shares have risen 184% over the last five years, with a compound annual growth rate (CAGR) of 31%. The company's earnings per share have grown at a 35% CAGR, but the share price has only increased by 23%. Despite this, the company's total shareholder return over the last five years was 282%, driven by its dividend payments.

Goodfellow Inc. (TSE:GDL) has experienced a remarkable surge in its share price over the past five years, with a compound annual growth rate (CAGR) of 184%. This impressive performance has been driven by strong earnings growth, which has seen the company's earnings per share (EPS) grow at a CAGR of 35% over the same period. However, the share price has only increased by 23% annually, indicating a discrepancy between the company's financial performance and market sentiment [1].

Despite the slower share price growth, Goodfellow's total shareholder return (TSR) over the last five years was 282%, largely due to its dividend payments. The company's dividend payments have significantly contributed to the total return for shareholders, making up for the slower share price appreciation. This is reflected in the company's TSR, which is notably higher than the share price return alone [1].

The company's current valuation is reflected in its P/E ratio, which stands at 9.00. This relatively low P/E ratio suggests that the market may not be as enthusiastic about the stock as its earnings growth would suggest. Insider buying activity in the last twelve months also indicates a positive sentiment, with insiders continuing to invest in the company [1].

However, it is essential to consider other factors, such as risks, when evaluating Goodfellow. The company has been identified with three warning signs, of which one is particularly significant. These risks should be carefully evaluated by investors [1].

Goodfellow's performance over the long term has been impressive, with a gain of 31% per year over the last five years. Despite a 14% year-to-date decline, including dividends, the company's long-term prospects remain promising. Investors should consider the current sell-off as an opportunity to evaluate the company's fundamentals and potential risks [1].

References:
[1] https://finance.yahoo.com/news/goodfellow-tse-gdl-shareholders-earned-154201034.html