Can You Imagine How Jubilant Interregional Distribution Grid Company of Urals's (MCX:MRKU) Shareholders Feel About Its 114% Share Price Gain?
It hasn't been the best quarter for Interregional Distribution Grid Company of Urals, Joint Stock Company (MCX:MRKU) shareholders, since the share price has fallen 15% in that time. But that doesn't change the fact that the returns over the last five years have been very strong. Indeed, the share price is up an impressive 114% in that time. To some, the recent pullback wouldn't be surprising after such a fast rise. Only time will tell if there is still too much optimism currently reflected in the share price. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 20% decline over the last twelve months.
View our latest analysis for Interregional Distribution Grid Company of Urals
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, Interregional Distribution Grid Company of Urals achieved compound earnings per share (EPS) growth of 29% per year. This EPS growth is higher than the 16% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. The reasonably low P/E ratio of 4.71 also suggests market apprehension.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Interregional Distribution Grid Company of Urals has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Interregional Distribution Grid Company of Urals will grow revenue in the future.
What about the Total Shareholder Return (TSR)?
We'd be remiss not to mention the difference between Interregional Distribution Grid Company of Urals's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Interregional Distribution Grid Company of Urals's TSR of 211% for the 5 years exceeded its share price return, because it has paid dividends.
A Different Perspective
Interregional Distribution Grid Company of Urals shareholders are down 17% for the year, but the market itself is up 7.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 25% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Interregional Distribution Grid Company of Urals has 1 warning sign we think you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on RU exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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