Earnings grew faster than the respectable 34% return delivered to Mineralbrunnen Überkingen-Teinach GmbH KGaA (FRA:MUT) shareholders over the last year

Mineralbrunnen Überkingen-Teinach GmbH & Co. KGaA (FRA:MUT) shareholders have seen the share price descend 17% over the month. But that doesn't change the fact that the returns over the last year have been respectable. We say this because the stock (which is up 27%) actually surpassed the market return of (27%).

In light of the stock dropping 12% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive one-year return.

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To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 the last year Mineralbrunnen Überkingen-Teinach GmbH KGaA grew its earnings per share (EPS) by 99%. This EPS growth is significantly higher than the 27% increase in the share price. So it seems like the market has cooled on Mineralbrunnen Überkingen-Teinach GmbH KGaA, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 10.63.

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

It might be well worthwhile taking a look at our free report on Mineralbrunnen Überkingen-Teinach GmbH KGaA's earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Mineralbrunnen Überkingen-Teinach GmbH KGaA the TSR over the last 1 year was 34%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Mineralbrunnen Überkingen-Teinach GmbH KGaA has rewarded shareholders with a total shareholder return of 34% in the last twelve months. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 4% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. For example, we've discovered 2 warning signs for Mineralbrunnen Überkingen-Teinach GmbH KGaA that you should be aware of before investing here.

We will like Mineralbrunnen Überkingen-Teinach GmbH KGaA better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) 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 German exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.