Did You Participate In Any Of Companhia Distribuidora de Gás do Rio de Janeiro - CEG's (BVMF:CEGR3) Fantastic 243% 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 a lighter note, a good company can see its share price rise well over 100%. Long term Companhia Distribuidora de Gás do Rio de Janeiro - CEG (BVMF:CEGR3) shareholders would be well aware of this, since the stock is up 199% in five years.

View our latest analysis for Companhia Distribuidora de Gás do Rio de Janeiro - CEG

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, Companhia Distribuidora de Gás do Rio de Janeiro - CEG achieved compound earnings per share (EPS) growth of 6.2% per year. This EPS growth is lower than the 24% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

This free interactive report on Companhia Distribuidora de Gás do Rio de Janeiro - CEG's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Companhia Distribuidora de Gás do Rio de Janeiro - CEG's total shareholder return (TSR) and its share price return. 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. Its history of dividend payouts mean that Companhia Distribuidora de Gás do Rio de Janeiro - CEG's TSR of 243% over the last 5 years is better than the share price return.

A Different Perspective

It's nice to see that Companhia Distribuidora de Gás do Rio de Janeiro - CEG shareholders have received a total shareholder return of 28% over the last year. However, the TSR over five years, coming in at 28% per year, is even more impressive. 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. Case in point: We've spotted 1 warning sign for Companhia Distribuidora de Gás do Rio de Janeiro - CEG you should be aware of.

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 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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