Did You Participate In Any Of Interregional Distribution Grid Company of Center and Volga Region's (MCX:MRKP) Incredible 565% Return?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term Interregional Distribution Grid Company of Center and Volga Region, Public Joint Stock Company (MCX:MRKP) shareholders would be well aware of this, since the stock is up 299% in five years. Also pleasing for shareholders was the 13% gain in the last three months. But this move may well have been assisted by the reasonably buoyant market (up 22% in 90 days).

Check out our latest analysis for Interregional Distribution Grid Company of Center and Volga Region

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.

During five years of share price growth, Interregional Distribution Grid Company of Center and Volga Region achieved compound earnings per share (EPS) growth of 15% per year. This EPS growth is lower than the 32% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Interregional Distribution Grid Company of Center and Volga Region's earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Interregional Distribution Grid Company of Center and Volga Region's TSR for the last 5 years was 565%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's nice to see that Interregional Distribution Grid Company of Center and Volga Region shareholders have received a total shareholder return of 4.3% over the last year. Of course, that includes the dividend. However, that falls short of the 46% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand Interregional Distribution Grid Company of Center and Volga Region better, we need to consider many other factors. Even so, be aware that Interregional Distribution Grid Company of Center and Volga Region is showing 3 warning signs in our investment analysis , you should know about...

Of course Interregional Distribution Grid Company of Center and Volga Region may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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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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