Korado-Bulgaria AD (BUL:KBG) Has Gifted Shareholders With A Fantastic 180% Total Return On Their Investment

By
Simply Wall St
Published
June 02, 2021
BUL:KBG
Source: Shutterstock

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Korado-Bulgaria AD (BUL:KBG) stock is up an impressive 136% over the last five years. Also pleasing for shareholders was the 18% gain in the last three months.

View our latest analysis for Korado-Bulgaria AD

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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, Korado-Bulgaria AD achieved compound earnings per share (EPS) growth of 13% per year. This EPS growth is slower than the share price growth of 19% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

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

earnings-per-share-growth
BUL:KBG Earnings Per Share Growth June 3rd 2021

Dive deeper into Korado-Bulgaria AD's key metrics by checking this interactive graph of Korado-Bulgaria AD's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Korado-Bulgaria AD's TSR for the last 5 years was 180%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

We're pleased to report that Korado-Bulgaria AD shareholders have received a total shareholder return of 40% over one year. And that does include the dividend. That's better than the annualised return of 23% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Korado-Bulgaria AD better, we need to consider many other factors. For instance, we've identified 2 warning signs for Korado-Bulgaria AD that you should be aware of.

But note: Korado-Bulgaria AD 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 BG exchanges.

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