Shareholders Of Yduqs Participações (BVMF:YDUQ3) Must Be Happy With Their 214% Total Return

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. For example, the Yduqs Participações S.A. (BVMF:YDUQ3) share price has soared 146% in the last half decade. Most would be very happy with that. Then again, the 8.1% share price decline hasn't been so fun for shareholders. We note that the broader market is down 2.9% in the last month, and this may have impacted Yduqs Participações' share price.

Check out our latest analysis for Yduqs Participações

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Yduqs Participações achieved compound earnings per share (EPS) growth of 6.8% per year. This EPS growth is slower than the share price growth of 20% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.

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

It might be well worthwhile taking a look at our free report on Yduqs Participações' 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Yduqs Participações' TSR for the last 5 years was 214%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments!

A Different Perspective

Yduqs Participações shareholders gained a total return of 2.5% during the year. Unfortunately this falls short of the market return. On the bright side, the longer term returns (running at about 26% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand Yduqs Participações better, we need to consider many other factors. For example, we've discovered 3 warning signs for Yduqs Participações that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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