Bolsa Mexicana de Valores. de's (BMV:BOLSAA) three-year earnings growth trails the shareholder returns

Low-cost index funds make it easy to achieve average market returns. But across the board there are plenty of stocks that underperform the market. Unfortunately for shareholders, while the Bolsa Mexicana de Valores, S.A.B. de C.V. (BMV:BOLSAA) share price is up 11% in the last three years, that falls short of the market return. At least the stock price is up over the last year, albeit only by 2.0%.

The past week has proven to be lucrative for Bolsa Mexicana de Valores. de investors, so let's see if fundamentals drove the company's three-year performance.

Check out our latest analysis for Bolsa Mexicana de Valores. de

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Bolsa Mexicana de Valores. de was able to grow its EPS at 8.4% per year over three years, sending the share price higher. The average annual share price increase of 3% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat.

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

We know that Bolsa Mexicana de Valores. de has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Bolsa Mexicana de Valores. de will grow revenue in the future.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. In the case of Bolsa Mexicana de Valores. de, it has a TSR of 28% 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 Bolsa Mexicana de Valores. de shareholders have received a total shareholder return of 8.1% over the last year. Of course, that includes the dividend. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before forming an opinion on Bolsa Mexicana de Valores. de you might want to consider the cold hard cash it pays as a dividend. This free chart tracks its dividend over time.

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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.