Compagnie d'Entreprises CFE (EBR:CFEB) Share Prices Have Dropped 31% In The Last Three Years

It is doubtless a positive to see that the Compagnie d'Entreprises CFE SA (EBR:CFEB) share price has gained some 48% in the last three months. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 31% in the last three years, falling well short of the market return.

Check out our latest analysis for Compagnie d'Entreprises CFE

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Compagnie d'Entreprises CFE saw its EPS decline at a compound rate of 19% per year, over the last three years. In comparison the 12% compound annual share price decline isn't as bad as the EPS drop-off. So the market may not be too worried about the EPS figure, at the moment -- or it may have previously priced some of the drop in.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Compagnie d'Entreprises CFE's key metrics by checking this interactive graph of Compagnie d'Entreprises CFE's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Compagnie d'Entreprises CFE's share price action, but we should also mention its total shareholder return (TSR). 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. Compagnie d'Entreprises CFE's TSR of was a loss of 29% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

We regret to report that Compagnie d'Entreprises CFE shareholders are down 13% for the year. Unfortunately, that's worse than the broader market decline of 9.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Compagnie d'Entreprises CFE better, we need to consider many other factors. Take risks, for example - Compagnie d'Entreprises CFE has 4 warning signs we think you should be aware of.

But note: Compagnie d'Entreprises CFE may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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