The 12% return this week takes Korporacja Gospodarcza efekt's (WSE:EFK) shareholders five-year gains to 25%

This week we saw the Korporacja Gospodarcza efekt S.A. (WSE:EFK) share price climb by 12%. But that doesn't change the fact that the returns over the last five years have been less than pleasing. After all, the share price is down 71% in that time, significantly under-performing the market.

While the last five years has been tough for Korporacja Gospodarcza efekt shareholders, this past week has shown signs of promise. So let's look at the longer term fundamentals and see if they've been the driver of the negative returns.

See our latest analysis for Korporacja Gospodarcza efekt

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).

Over five years Korporacja Gospodarcza efekt's earnings per share dropped significantly, falling to a loss, with the share price also lower. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.

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 Korporacja Gospodarcza efekt's earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

We've already covered Korporacja Gospodarcza efekt'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. Its history of dividend payouts mean that Korporacja Gospodarcza efekt's TSR of 25% over the last 5 years is better than the share price return.

A Different Perspective

While the broader market gained around 30% in the last year, Korporacja Gospodarcza efekt shareholders lost 5.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Korporacja Gospodarcza efekt better, we need to consider many other factors. For instance, we've identified 3 warning signs for Korporacja Gospodarcza efekt (2 are potentially serious) that you should be aware of.

We will like Korporacja Gospodarcza efekt better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.