Shareholders Of CR2 Empreendimentos Imobiliários (BVMF:CRDE3) Have Received 29% On Their Investment

Many investors define successful investing as beating the market average over the long term. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term CR2 Empreendimentos Imobiliários S.A. (BVMF:CRDE3) shareholders, since the share price is down 25% in the last three years, falling well short of the market return of around 53%.

Check out our latest analysis for CR2 Empreendimentos Imobiliários

CR2 Empreendimentos Imobiliários isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over three years, CR2 Empreendimentos Imobiliários grew revenue at 11% per year. That's a fairly respectable growth rate. Shareholders have seen the share price fall at 8% per year, for three years. So the market has definitely lost some love for the stock. With revenue growing at a solid clip, now might be the time to focus on the possibility that it will have a brighter future.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

This free interactive report on CR2 Empreendimentos Imobiliários' balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between CR2 Empreendimentos Imobiliários' total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for CR2 Empreendimentos Imobiliários shareholders, and that cash payout contributed to why its TSR of 29%, over the last 3 years, is better than the share price return.

A Different Perspective

We're pleased to report that CR2 Empreendimentos Imobiliários shareholders have received a total shareholder return of 64% over one year. That's better than the annualised return of 10% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - CR2 Empreendimentos Imobiliários has 2 warning signs we think you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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