Cyfrowy Polsat (WSE:CPS) sheds zł323m, company earnings and investor returns have been trending downwards for past three years

Cyfrowy Polsat S.A. (WSE:CPS) shareholders should be happy to see the share price up 14% in the last quarter. Meanwhile over the last three years the stock has dropped hard. Regrettably, the share price slid 57% in that period. Some might say the recent bounce is to be expected after such a bad drop. After all, could be that the fall was overdone.

After losing 3.6% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.

View our latest analysis for Cyfrowy Polsat

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).

Cyfrowy Polsat saw its EPS decline at a compound rate of 46% per year, over the last three years. This fall in the EPS is worse than the 25% compound annual share price fall. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term.

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

We know that Cyfrowy Polsat has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About The Total Shareholder Return (TSR)?

We've already covered Cyfrowy Polsat's share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Cyfrowy Polsat shareholders, and that cash payout explains why its total shareholder loss of 54%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

It's good to see that Cyfrowy Polsat has rewarded shareholders with a total shareholder return of 19% in the last twelve months. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Cyfrowy Polsat has 1 warning sign we think you should be aware of.

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 Polish 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.