How Much Did Administradora de Fondos de Pensiones Cuprum's (SNSE:CUPRUM) Shareholders Earn On Their Investment Over The Last Three Years?

Administradora de Fondos de Pensiones Cuprum S.A. (SNSE:CUPRUM) shareholders should be happy to see the share price up 18% in the last quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. Truth be told the share price declined 42% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

View our latest analysis for Administradora de Fondos de Pensiones Cuprum

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Administradora de Fondos de Pensiones Cuprum saw its EPS decline at a compound rate of 9.3% per year, over the last three years. This reduction in EPS is slower than the 16% annual reduction in the share price. So it seems the market was too confident about the business, in the past. This increased caution is also evident in the rather low P/E ratio, which is sitting at 10.58.

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

Dive deeper into Administradora de Fondos de Pensiones Cuprum's key metrics by checking this interactive graph of Administradora de Fondos de Pensiones Cuprum's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Administradora de Fondos de Pensiones Cuprum's total shareholder return (TSR) and its share price return. 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. Administradora de Fondos de Pensiones Cuprum's TSR of was a loss of 16% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Administradora de Fondos de Pensiones Cuprum shareholders are down 2.7% for the year, but the market itself is up 38%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 13%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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. For example, we've discovered 1 warning sign for Administradora de Fondos de Pensiones Cuprum that you should be aware of before investing here.

We will like Administradora de Fondos de Pensiones Cuprum better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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