Earnings growth outpaced the stellar 135% return delivered to International Cement Group (SGX:KUO) shareholders over the last year

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the International Cement Group Ltd. (SGX:KUO) share price had more than doubled in just one year - up 135%. Better yet, the share price has gained 161% in the last quarter. It is also impressive that the stock is up 74% over three years, adding to the sense that it is a real winner.

Since the stock has added S$29m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 last year International Cement Group grew its earnings per share (EPS) by 357%. It's fair to say that the share price gain of 135% did not keep pace with the EPS growth. Therefore, it seems the market isn't as excited about International Cement Group as it was before. This could be an opportunity.

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

It might be well worthwhile taking a look at our free report on International Cement Group's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that International Cement Group shareholders have received a total shareholder return of 135% over the last year. That's better than the annualised return of 6% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand International Cement Group better, we need to consider many other factors. Even so, be aware that International Cement Group is showing 2 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.