S.N.T.G.N. Transgaz's (BVB:TGN) one-year earnings growth trails the notable shareholder returns

A diverse portfolio of stocks will always have winners and losers. Of course, the aim of the game is to pick stocks that do better than an index fund. S.N.T.G.N. Transgaz S.A. (BVB:TGN) has done well over the last year, with the stock price up 41% beating the market return of 35% (not including dividends). And shareholders have also done well over the long term, with an increase of 35% in the last three years.

Since it's been a strong week for S.N.T.G.N. Transgaz shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for S.N.T.G.N. Transgaz

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. 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.

During the last year S.N.T.G.N. Transgaz grew its earnings per share (EPS) by 44%. This EPS growth is reasonably close to the 41% increase in the share price. This makes us think the market hasn't really changed its sentiment around the company, in the last year. It looks like the share price is responding to the EPS.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how S.N.T.G.N. Transgaz has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling S.N.T.G.N. Transgaz stock, you should check out this FREE detailed report on its balance sheet.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of S.N.T.G.N. Transgaz, it has a TSR of 47% for the last 1 year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

S.N.T.G.N. Transgaz shareholders are up 47% for the year (even including dividends). But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 6% over half a decade This suggests the company might be improving over time. Before deciding if you like the current share price, check how S.N.T.G.N. Transgaz scores on these 3 valuation metrics.

If you are like me, then you will not want to miss this free list of undervalued small caps 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 Romanian 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.