Consumer Durables News

Cury Construtora e Incorporadora’s (BVMF:CURY3) 104% return outpaced the company’s earnings growth over the same one-year period

These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Cury Construtora e Incorporadora S.A. (BVMF:CURY3) share price is up 85% in the last 1 year, clearly besting the market decline of around 2.2% (not including dividends). So that should have shareholders smiling. Cury Construtora e Incorporadora hasn’t been listed for long, so it’s still not clear if it is a long term winner.

After a strong gain in the past week, it’s worth seeing if longer term returns have been driven by improving fundamentals.

Check out the opportunities and risks within the BR Consumer Durables industry.

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year Cury Construtora e Incorporadora grew its earnings per share (EPS) by 16%. The share price gain of 85% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

BOVESPA:CURY3 Earnings Per Share Growth November 2nd 2022

We know that Cury Construtora e Incorporadora has improved its bottom line lately, but is it going to grow revenue? This free report showing analyst revenue forecasts should help you figure out if the EPS growth can be sustained.

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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Cury Construtora e Incorporadora the TSR over the last 1 year was 104%, which is better than the share price return mentioned above. And there’s no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Cury Construtora e Incorporadora boasts a total shareholder return of 104% for the last year (that includes the dividends) . A substantial portion of that gain has come in the last three months, with the stock up 57% in that time. This suggests the company is continuing to win over new investors. It’s always interesting to track share price performance over the longer term. But to understand Cury Construtora e Incorporadora better, we need to consider many other factors. Take risks, for example – Cury Construtora e Incorporadora has 1 warning sign we think you should be aware of.

But note: Cury Construtora e Incorporadora 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 BR exchanges.

Valuation is complex, but we’re helping make it simple.

Find out whether Cury Construtora e Incorporadora is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.

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