Chelyabinsk Metallurgical Plant PAO's(MCX:CHMK) Share Price Is Down 17% Over The Past Five Years.

Chelyabinsk Metallurgical Plant PAO (MCX:CHMK) shareholders should be happy to see the share price up 20% in the last quarter. But that doesn't change the fact that the returns over the last five years have been less than pleasing. You would have done a lot better buying an index fund, since the stock has dropped 17% in that half decade.

See our latest analysis for Chelyabinsk Metallurgical Plant PAO

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. 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 the five years over which the share price declined, Chelyabinsk Metallurgical Plant PAO's earnings per share (EPS) dropped by 34% each year. The share price decline of 4% per year isn't as bad as the EPS decline. The relatively muted share price reaction might be because the market expects the business to turn around.

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

It might be well worthwhile taking a look at our free report on Chelyabinsk Metallurgical Plant PAO's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Chelyabinsk Metallurgical Plant PAO has rewarded shareholders with a total shareholder return of 5.3% in the last twelve months. Notably the five-year annualised TSR loss of 3% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. For instance, we've identified 5 warning signs for Chelyabinsk Metallurgical Plant PAO (2 are a bit concerning) that you should be aware of.

But note: Chelyabinsk Metallurgical Plant PAO may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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