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Optimism for Oron Group Investments & Holdings (TLV:ORON) has grown this past week, despite three-year decline in earnings

Simply Wall St · 4d ago

You can receive the average market return by buying a low-cost index fund. But you can make better returns by buying undervalued shares. To wit, Oron Group Investments & Holdings Ltd (TLV:ORON) shares are up 98% in three years, besting the market return. Also positive was the solid 58% share price increase over the last twelve months.

Since the stock has added ₪182m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

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To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over the last three years, Oron Group Investments & Holdings failed to grow earnings per share, which fell 9.5% (annualized).

This means it's unlikely the market is judging the company based on earnings growth. Given this situation, it makes sense to look at other metrics too.

The modest 1.9% dividend yield is unlikely to be propping up the share price. It could be that the revenue growth of 20% per year is viewed as evidence that Oron Group Investments & Holdings is growing. If the company is being managed for the long term good, today's shareholders might be right to hold on.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
TASE:ORON Earnings and Revenue Growth January 6th 2026

If you are thinking of buying or selling Oron Group Investments & Holdings stock, you should check out this FREE detailed report on its balance sheet.

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 is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Oron Group Investments & Holdings, it has a TSR of 116% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Oron Group Investments & Holdings has rewarded shareholders with a total shareholder return of 63% in the last twelve months. And that does include the dividend. That's better than the annualised return of 17% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Oron Group Investments & Holdings (1 doesn't sit too well with us!) that you should be aware of before investing here.

Of course Oron Group Investments & Holdings 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 Israeli exchanges.