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Cury Construtora e Incorporadora’s (BVMF:CURY3) 9.3% YoY earnings expansion surpassed the shareholder returns over the past year

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Cury Construtora e Incorporadora S.A. (BVMF:CURY3) shareholders will doubtless be very grateful to see the share price up 34% in the last month.

On a more encouraging note the company has added R$218m to its market cap in just the last 7 days, so let’s see if we can determine what’s driven the one-year loss for shareholders.

Check out our latest analysis for Cury Construtora e Incorporadora

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Even though the Cury Construtora e Incorporadora share price is down over the year, its EPS actually improved. Of course, the situation might betray previous over-optimism about growth.

It’s fair to say that the share price does not seem to be reflecting the EPS growth. So it’s easy to justify a look at some other metrics.

Vibrant companies don’t usually cut their dividends, so the recent reduction might help explain why the Cury Construtora e Incorporadora share price has been weak.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
BOVESPA:CURY3 Earnings and Revenue Growth July 30th 2022

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Cury Construtora e Incorporadora, it has a TSR of 2.3% for the last 1 year. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

Cury Construtora e Incorporadora boasts a total shareholder return of 2.3% for the last year (that includes the dividends) . And the share price momentum remains respectable, with a gain of 11% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Even so, be aware that Cury Construtora e Incorporadora is showing 1 warning sign in our investment analysis , you should know about…

We will like Cury Construtora e Incorporadora better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on BR exchanges.

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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