Stock Analysis

ZCCM Investments Holdings (EPA:MLZAM) shareholder returns have been splendid, earning 145% in 3 years

ENXTPA:MLZAM
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. To wit, the ZCCM Investments Holdings Plc (EPA:MLZAM) share price has flown 105% in the last three years. That sort of return is as solid as granite. It's also up 16% in about a month.

The past week has proven to be lucrative for ZCCM Investments Holdings investors, so let's see if fundamentals drove the company's three-year performance.

Check out our latest analysis for ZCCM Investments Holdings

Given that ZCCM Investments Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

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

earnings-and-revenue-growth
ENXTPA:MLZAM Earnings and Revenue Growth December 30th 2023

If you are thinking of buying or selling ZCCM Investments Holdings stock, you should check out this FREE detailed report on its balance sheet.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for ZCCM Investments Holdings the TSR over the last 3 years was 145%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that ZCCM Investments Holdings shareholders have received a total shareholder return of 30% over the last year. That's including the dividend. That's better than the annualised return of 15% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand ZCCM Investments Holdings better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with ZCCM Investments Holdings , and understanding them should be part of your investment process.

Of course ZCCM Investments Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

Valuation is complex, but we're helping make it simple.

Find out whether ZCCM Investments Holdings is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.