Those who invested in Grupo Comercial Chedraui. de (BMV:CHDRAUIB) three years ago are up 304%

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the Grupo Comercial Chedraui, S.A.B. de C.V. (BMV:CHDRAUIB) share price has flown 293% in the last three years. That sort of return is as solid as granite. It's down 2.5% in the last seven days.

So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns.

Check out our latest analysis for Grupo Comercial Chedraui. de

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

Grupo Comercial Chedraui. de was able to grow its EPS at 42% per year over three years, sending the share price higher. In comparison, the 58% per year gain in the share price outpaces the EPS growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. That's not necessarily surprising considering the three-year track record of earnings growth.

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

We know that Grupo Comercial Chedraui. de has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Grupo Comercial Chedraui. de's balance sheet strength is a great place to start, if you want to investigate the stock further.

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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Grupo Comercial Chedraui. de, it has a TSR of 304% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that Grupo Comercial Chedraui. de shareholders have received a total shareholder return of 24% over the last year. Of course, that includes the dividend. However, the TSR over five years, coming in at 31% per year, is even more impressive. Before deciding if you like the current share price, check how Grupo Comercial Chedraui. de scores on these 3 valuation metrics.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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