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When you buy and hold a stock for the long term, you definitely want it to provide a positive return. But more than that, you probably want to see it rise more than the market average. But Public Joint Stock Company Gazprom Gazoraspredelenie Rostov-na-Donu (MCX:RTGZ) has fallen short of that second goal, with a share price rise of 35% over five years, which is below the market return. Zooming in, the stock is up a respectable 16% in the last year.
View our latest analysis for Gazprom Gazoraspredelenie Rostov-na-Donu
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.
During five years of share price growth, Gazprom Gazoraspredelenie Rostov-na-Donu achieved compound earnings per share (EPS) growth of 6.7% per year. This EPS growth is reasonably close to the 6.2% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
Dive deeper into Gazprom Gazoraspredelenie Rostov-na-Donu's key metrics by checking this interactive graph of Gazprom Gazoraspredelenie Rostov-na-Donu's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
We'd be remiss not to mention the difference between Gazprom Gazoraspredelenie Rostov-na-Donu's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Gazprom Gazoraspredelenie Rostov-na-Donu hasn't been paying dividends, but its TSR of 38% exceeds its share price return of 35%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
A Different Perspective
Gazprom Gazoraspredelenie Rostov-na-Donu provided a TSR of 16% over the last twelve months. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 6.6% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. You could get a better understanding of Gazprom Gazoraspredelenie Rostov-na-Donu's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.