Did You Participate In Any Of Second Generating Company of the Electric Power Wholesale Market's (MCX:OGKB) Incredible 336% Return?

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. One great example is Public Joint-Stock Company "Second Generating Company of the Electric Power Wholesale Market" (MCX:OGKB) which saw its share price drive 249% higher over five years.

Check out our latest analysis for Second Generating Company of the Electric Power Wholesale Market

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 five years of share price growth, Second Generating Company of the Electric Power Wholesale Market moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. We can see that the Second Generating Company of the Electric Power Wholesale Market share price is up 40% in the last three years. In the same period, EPS is up 18% per year. This EPS growth is higher than the 12% average annual increase in the share price over the same three years. So you might conclude the market is a little more cautious about the stock, these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 6.30.

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

This free interactive report on Second Generating Company of the Electric Power Wholesale Market's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

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 Second Generating Company of the Electric Power Wholesale Market, it has a TSR of 336% for the last 5 years. 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

We're pleased to report that Second Generating Company of the Electric Power Wholesale Market shareholders have received a total shareholder return of 24% over one year. And that does include the dividend. Having said that, the five-year TSR of 34% a year, is even better. It's always interesting to track share price performance over the longer term. But to understand Second Generating Company of the Electric Power Wholesale Market better, we need to consider many other factors. For instance, we've identified 1 warning sign for Second Generating Company of the Electric Power Wholesale Market that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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