Coventry Group (ASX: CYG) shareholder returns have been strong, gaining 128% in 3 years
The maximum you can lose on any stock (assuming you aren’t using leverage) is 100% of your money. But if you buy stocks in a really good company, you can Following that double your money. For example, the Coventry Group Ltd. The share price (ASX: CYG) has climbed 102% in the past three years. This kind of feedback is as solid as granite. It even increased by 11% last week.
After a solid gain last week, it’s worth seeing if long-term returns have been boosted by improving fundamentals.
See our latest analysis for the Coventry Group
In his essay Graham-and-Doddsville super-investors Warren Buffett described how stock prices don’t always rationally reflect a company’s value. A flawed but reasonable way to gauge how sentiment is changing around a company is to compare earnings per share (EPS) with the stock price.
The Coventry Group has become profitable over the past three years. Given the importance of this milestone, it’s no surprise that the share price has risen sharply.
The image below shows how EPS has tracked over time (if you click on the image you can see more detail).
It is of course great to see how Coventry Group has increased its profits over the years, but the future is more important to shareholders. You can see how his track record has strengthened (or weakened) over time in this free interactive graphics.
What about dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. TSR is a yield calculation that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of any discounted capital increase and spin-off. It’s fair to say that the TSR gives a more complete picture of dividend paying stocks. In the case of Coventry Group, it has a TSR of 128% for the past 3 years. This exceeds its share price return that we mentioned earlier. This is largely the result of his dividend payments!
A different perspective
We are pleased to report that the shareholders of the Coventry Group have received a total shareholder return of 84% over one year. Of course, this includes the dividend. This is better than the 17% annualized return over half a decade, which implies that the company has been doing better recently. At the best of times, this can portend real business momentum, meaning that now may be a good time to dig deep. I find it very interesting to look at the stock price over the long term as an indicator of company performance. But to really understand better, we have to take other information into account as well. Consider risks, for example. Every business has them, and we’ve spotted 1 warning sign for the Coventry group you should know.
But beware : Coventry Group may not be the best stock to buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently trading on AU stock exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.