How Much Did Powszechny Zaklad Ubezpieczen's(WSE:PZU) Shareholders Earn From Share Price Movements Over The Last Three Years?

Powszechny Zaklad Ubezpieczen SA (WSE:PZU) shareholders should be happy to see the share price up 16% in the last quarter. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 27% in the last three years, significantly under-performing the market.

View our latest analysis for Powszechny Zaklad Ubezpieczen

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Powszechny Zaklad Ubezpieczen saw its EPS decline at a compound rate of 8.0% per year, over the last three years. This change in EPS is reasonably close to the 10% average annual decrease in the share price. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. Rather, the share price has approximately tracked EPS growth.

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

It might be well worthwhile taking a look at our free report on Powszechny Zaklad Ubezpieczen's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Powszechny Zaklad Ubezpieczen's share price action, but we should also mention its total shareholder return (TSR). 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 Powszechny Zaklad Ubezpieczen's TSR, which was a 16% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

Powszechny Zaklad Ubezpieczen shareholders are down 15% for the year, but the market itself is up 16%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 2% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Powszechny Zaklad Ubezpieczen better, we need to consider many other factors. Take risks, for example - Powszechny Zaklad Ubezpieczen has 2 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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