Introducing Cenergy Holdings (EBR:CENER), A Stock That Climbed 33% In The Last Year

Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the Cenergy Holdings SA (EBR:CENER) share price is up 33% in the last year, clearly besting the market decline of around 8.1% (not including dividends). So that should have shareholders smiling. However, the longer term returns haven't been so impressive, with the stock up just 21% in the last three years.

See our latest analysis for Cenergy Holdings

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 the last year Cenergy Holdings grew its earnings per share (EPS) by 94%. It's fair to say that the share price gain of 33% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Cenergy Holdings as it was before. This could be an opportunity.

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

It might be well worthwhile taking a look at our free report on Cenergy Holdings' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, Cenergy Holdings' total shareholder return last year was 33%. So this year's TSR was actually better than the three-year TSR (annualized) of 7%. Given the track record of solid returns over varying time frames, it might be worth putting Cenergy Holdings on your watchlist. 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 - Cenergy Holdings has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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