The loss of five years for Grupo Carso. of (BMV: GCARSOA1) probably due to declining profits
Ideally, your overall portfolio should beat the market average. But every investor is virtually certain to have both outperforming and underperforming stocks. At this point, some shareholders may question their investment in Grupo Carso, SAB de CV (BMV: GCARSOA1), since the last five years have seen the share price fall by 23%. But it is up 7.6% last week.
While the last five years have been difficult for Grupo Carso. of shareholders, the past week has shown signs of promise. So let’s take a look at longer-term fundamentals and see if they’ve been the driving force behind negative returns.
Check out our latest analysis for Grupo Carso. of
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are overly responsive dynamic systems and investors are not always rational. One way to look at how market sentiment has changed over time is to look at the interaction between a company’s stock price and its earnings per share (EPS).
In the five years that the share price has fallen, Grupo Carso. De’s earnings per share (EPS) fell 0.2% each year. Note that the share price fell faster than EPS, at a rate of 5% per year, over the period. So it seems that the market was overconfident in the company in the past.
The graph below illustrates the evolution of EPS over time (reveal the exact values by clicking on the image).
We know Grupo Carso. de has improved its results lately, but will it increase its revenues? This free A report showing analysts’ revenue forecasts should help you determine if EPS growth can be sustained.
What about dividends?
In addition to measuring stock price performance, investors should also consider the total shareholder return (TSR). While the share price return reflects only the change in the share price, the TSR includes the value of dividends (assuming they have been reinvested) and the benefit of any capital increase or spin-off. updated. Arguably, the TSR gives a more complete picture of the return generated by a stock. In the case of Grupo Carso. de, he has a TSR of -19% for the past 5 years. This exceeds its share price return that we mentioned earlier. And there’s no price guessing that dividend payments are a big part of the reason for the discrepancy!
A different perspective
Carso Group. shareholder base increased by 3.3% over the year (same dividends included). Unfortunately, this does not hit the market return. But at least it’s still a gain! Over five years, the TSR has been reduced by 4% per year, over five years. The business may well stabilize. Before forming an opinion on Grupo Carso. you may want to consider these 3 evaluation metrics.
If you like to buy stocks alongside management then you might love this free list of companies. (Hint: insiders bought them).
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the MX exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.