Earnings growth outpaced the favorable 58% return delivered to Genomma Lab Internacional. de (BMV:LABB) shareholders over the last year

While Genomma Lab Internacional, S.A.B. de C.V. (BMV:LABB) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 12% in the last quarter. But looking back over the last year, the returns have actually been rather pleasing! To wit, it had solidly beat the market, up 52%.

Since the stock has added Mex$2.5b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

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In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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).

Genomma Lab Internacional. de was able to grow EPS by 92% in the last twelve months. This EPS growth is significantly higher than the 52% increase in the share price. So it seems like the market has cooled on Genomma Lab Internacional. de, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 11.34.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

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

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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Genomma Lab Internacional. de's TSR for the last 1 year was 58%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

We're pleased to report that Genomma Lab Internacional. de shareholders have received a total shareholder return of 58% over one year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 8% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Importantly, we haven't analysed Genomma Lab Internacional. de's dividend history. This free visual report on its dividends is a must-read if you're thinking of buying.

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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.