Shareholders Of Grupo Aeroportuario del Centro Norte. de (BMV:OMAB) Must Be Happy With Their 73% Return

When we invest, we're generally looking for stocks that outperform the market average. And in our experience, buying the right stocks can give your wealth a significant boost. For example, the Grupo Aeroportuario del Centro Norte, S.A.B. de C.V. (BMV:OMAB) share price is up 49% in the last 5 years, clearly besting the market return of around 3.6% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 10% in the last year.

Check out our latest analysis for Grupo Aeroportuario del Centro Norte. de

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, Grupo Aeroportuario del Centro Norte. de actually saw its EPS drop 2.2% per year.

By glancing at these numbers, we'd posit that the decline in earnings per share is not representative of how the business has changed over the years. Therefore, it's worth taking a look at other metrics to try to understand the share price movements.

In contrast revenue growth of 7.9% per year is probably viewed as evidence that Grupo Aeroportuario del Centro Norte. de is growing, a real positive. In that case, the company may be sacrificing current earnings per share to drive growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Grupo Aeroportuario del Centro Norte. de is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. So it makes a lot of sense to check out what analysts think Grupo Aeroportuario del Centro Norte. de will earn in the future (free analyst consensus estimates)

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Grupo Aeroportuario del Centro Norte. de's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Grupo Aeroportuario del Centro Norte. de's TSR of 73% over the last 5 years is better than the share price return.

A Different Perspective

Grupo Aeroportuario del Centro Norte. de shareholders are up 10% for the year. Unfortunately this falls short of the market return. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 12% over five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Grupo Aeroportuario del Centro Norte. de you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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This article by Simply Wall St is general in nature. 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.
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