Earnings growth outpaced the 26% return delivered to Central Cooperative Bank AD (BUL:CCB) shareholders over the last year

Simply Wall St
January 11, 2022
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These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the Central Cooperative Bank AD (BUL:CCB) share price is 26% higher than it was a year ago, much better than the market return of around 6.0% (not including dividends) in the same period. So that should have shareholders smiling. Zooming out, the stock is actually down 4.7% in the last three years.

The past week has proven to be lucrative for Central Cooperative Bank AD investors, so let's see if fundamentals drove the company's one-year performance.

Check out our latest analysis for Central Cooperative Bank AD

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the last year Central Cooperative Bank AD grew its earnings per share (EPS) by 62%. It's fair to say that the share price gain of 26% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about Central Cooperative Bank AD as it was before. This could be an opportunity. The caution is also evident in the lowish P/E ratio of 4.88.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

BUL:CCB Earnings Per Share Growth January 11th 2022

Dive deeper into Central Cooperative Bank AD's key metrics by checking this interactive graph of Central Cooperative Bank AD's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Central Cooperative Bank AD shareholders have received a total shareholder return of 26% over the last year. That certainly beats the loss of about 5% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Central Cooperative Bank AD (of which 1 is a bit unpleasant!) 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 BG exchanges.

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