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Abu Dhabi National Insurance Company PJSC's (ADX:ADNIC) 18% CAGR outpaced the company's earnings growth over the same five-year period

Simply Wall St · 5d ago

The main point of investing for the long term is to make money. Furthermore, you'd generally like to see the share price rise faster than the market. But Abu Dhabi National Insurance Company PJSC (ADX:ADNIC) has fallen short of that second goal, with a share price rise of 61% over five years, which is below the market return. On a brighter note, more newer shareholders are probably rather content with the 26% share price gain over twelve months.

Since it's been a strong week for Abu Dhabi National Insurance Company PJSC shareholders, let's have a look at trend of the longer term fundamentals.

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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 flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Abu Dhabi National Insurance Company PJSC achieved compound earnings per share (EPS) growth of 4.3% per year. This EPS growth is lower than the 10% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
ADX:ADNIC Earnings Per Share Growth January 8th 2026

Dive deeper into Abu Dhabi National Insurance Company PJSC's key metrics by checking this interactive graph of Abu Dhabi National Insurance Company PJSC's earnings, revenue and cash flow.

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. We note that for Abu Dhabi National Insurance Company PJSC the TSR over the last 5 years was 125%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's nice to see that Abu Dhabi National Insurance Company PJSC shareholders have received a total shareholder return of 35% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 18% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 instance, we've identified 1 warning sign for Abu Dhabi National Insurance Company PJSC that you should be aware of.

We will like Abu Dhabi National Insurance Company PJSC better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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