Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes' (EPA:CRSU) earnings have declined over five years, contributing to shareholders 26% loss

While it may not be enough for some shareholders, we think it is good to see the Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes (EPA:CRSU) share price up 24% in a single quarter. But over the last half decade, the stock has not performed well. After all, the share price is down 40% in that time, significantly under-performing the market.

The recent uptick of 9.0% could be a positive sign of things to come, so let's take a look at historical fundamentals.

View our latest analysis for Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Looking back five years, both Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes' share price and EPS declined; the latter at a rate of 1.3% per year. This reduction in EPS is less than the 10% annual reduction in the share price. This implies that the market was previously too optimistic about the stock. The less favorable sentiment is reflected in its current P/E ratio of 6.32.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes' 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. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes' TSR for the last 5 years was -26%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's good to see that Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes has rewarded shareholders with a total shareholder return of 22% in the last twelve months. And that does include the dividend. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes better, we need to consider many other factors. For example, we've discovered 1 warning sign for Caisse Régionale de Crédit Agricole Mutuel Sud Rhône Alpes that you should be aware of before investing here.

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 French 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.