Despite a recent 16% decline, Grafton Group's (LON:GFTU) shares have seen an 11% rise over the past three years. This has been primarily driven by a sustained yearly earnings per share (EPS) growth of 27%. However, investor sentiment remains cautious, as evidenced by a modest 4% yearly increase in share price and a Price to Earnings (P/E) ratio of 9.09, indicating a subdued market sentiment.
Notably, substantial insider investments and regular dividend payments demonstrate the company's financial stability and suggest confidence in its future performance. These dividends have played a pivotal role in boosting Grafton Group's total shareholder return (TSR), which stands at 24% over the past three years, outpacing its share price return.
The combination of consistent EPS growth, significant insider investments, regular dividend payments, and an encouraging TSR, despite the prevailing market sentiment, suggests Grafton Group's potential to deliver strong returns in the future.
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