Interregional Distribution Grid Company of the North-West (MCX:MRKZ) Has Gifted Shareholders With A Fantastic 121% Total Return On Their Investment

Passive investing in index funds can generate returns that roughly match the overall market. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Public Joint-Stock Company Interregional Distribution Grid Company of the North-West (MCX:MRKZ) share price is 73% higher than it was five years ago, which is more than the market average. Zooming in, the stock is actually down 1.2% in the last year.

Check out our latest analysis for Interregional Distribution Grid Company of the North-West

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

During the five years of share price growth, Interregional Distribution Grid Company of the North-West moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

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

Dive deeper into Interregional Distribution Grid Company of the North-West's key metrics by checking this interactive graph of Interregional Distribution Grid Company of the North-West's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Interregional Distribution Grid Company of the North-West's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Interregional Distribution Grid Company of the North-West's TSR of 121% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

Interregional Distribution Grid Company of the North-West provided a TSR of 1.3% over the last twelve months. But that was short of the market average. On the bright side, the longer term returns (running at about 17% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. 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. To that end, you should learn about the 4 warning signs we've spotted with Interregional Distribution Grid Company of the North-West (including 1 which is potentially serious) .

We will like Interregional Distribution Grid Company of the North-West 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 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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