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Interregional Distribution Grid Company of South Public Joint Stock Company (MCX:MRKY) shareholders might be concerned after seeing the share price drop 18% in the last quarter. But at least the stock is up over the last five years. In that time, it is up 50%, which isn't bad, but is below the market return of 146%.
See our latest analysis for Interregional Distribution Grid Company of South
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, Interregional Distribution Grid Company of South managed to grow its earnings per share at 47% a year. This EPS growth is higher than the 8.4% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. This cautious sentiment is reflected in its (fairly low) P/E ratio of 3.55.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
It is of course excellent to see how Interregional Distribution Grid Company of South has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Interregional Distribution Grid Company of South, it has a TSR of 94% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Investors in Interregional Distribution Grid Company of South had a tough year, with a total loss of 2.4% (including dividends), against a market gain of about 22%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 14% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Before forming an opinion on Interregional Distribution Grid Company of South you might want to consider the cold hard cash it pays as a dividend. This free chart tracks its dividend over time.