Cinemark Holdings' (NYSE:CNK) investors will be pleased with their stellar 121% return over the last year

Cinemark Holdings, Inc. (NYSE:CNK) shareholders might be concerned after seeing the share price drop 13% in the last month. Despite this, the stock is a strong performer over the last year, no doubt about that. We're very pleased to report the share price shot up 121% in that time. So we think most shareholders won't be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

See our latest analysis for Cinemark Holdings

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

Cinemark Holdings was able to grow EPS by 124% in the last twelve months. This EPS growth is remarkably close to the 121% increase in the share price. That suggests that the market sentiment around the company hasn't changed much over that time. It makes intuitive sense that the share price and EPS would grow at similar rates.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Cinemark Holdings has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Cinemark Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Cinemark Holdings has rewarded shareholders with a total shareholder return of 121% in the last twelve months. That certainly beats the loss of about 0.3% per year over the last half decade. 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. It's always interesting to track share price performance over the longer term. But to understand Cinemark Holdings better, we need to consider many other factors. Take risks, for example - Cinemark Holdings has 2 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

But note: Cinemark Holdings 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 American exchanges.

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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.