Lojas Renner (BVMF: LREN3) profits and shareholder returns have been down in the past five years, but the share increases by 5.6% last week

Lojas Renner Sa (BVMF: Lren3) The shareholders should be happy to see the share price by 13% last month. But the stock has not worked well in the past half decades. In fact, the share price has dropped by 48%, which goes far beyond the return when buying an index fund.

While the stock rose by 5.6% last week, but long -term shareholders are still in red, we look at what the basics can tell us.

We discovered 2 warning signs About Lojas Renner. Look at them for free.

While the markets are a strong price mechanism, the share prices reflect the mood of investors and not only underlying business performance. By comparing the profits per share (EPS) and the changes in stocks over time, we can get a feeling for how investors have turned into a company over time.

In retrospect, both stock price of Lojas Renner and EPS were back for five years. The latter at a speed of 0.5% per year. This reduction of the EPS is less than the annual reduction of the share price by 12%. So it seems that the market has been too safe in the past.

The following graphic shows how EPS has changed over time (reveal the exact values ​​by clicking on the picture).

We know that Lojas Renner has recently improved its end result, but will it increase sales? You could check this free Report shows analyst sales forecasts.

What about dividends?

It is important to take into account the entire shareholder return and the share return for a certain share. While the share return only reflects the change in the share price, the TSR contains the value of dividends (assuming that they were reinvested) and the advantage of reduced capital procurement or disorder. The TSR may give a more comprehensive picture of the returns achieved by a share. We find that for Lojas Renner the TSR in the past 5 years was -39%, which is better than the share return mentioned above. And there is no price for the assumption that the dividend payments largely explain the deviations!

A different perspective

Lojas Renner has made a TSR of 3.0% available in the past twelve months. But that was not before the market average. This is still a win on the bright side, and it is certainly better than the annual loss of about 7% over half a decade. So this could be a sign that the business has overturned its assets. While it is worth taking into account the different effects that the market conditions on the share price can have, there are other factors that are even more important. For example, consider risks. Every company has it and we saw 2 warning signs for Lojas Renner You should know about it.

But note: Lojas Renner may not be the best stock for sale. Take a look at it free List of interesting companies with previous profit growth (and further growth forecast).

Please note that the market returns specified in this article reflect the average average share returns that are currently about Brazilian exchange.

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This article by Simply Wall Street is a general nature. We offer comments based on historical data and analyst forecasts that only use an impartial methodology, and our articles are not intended as financial advice. It is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We would like to use a long -term focused analysis by basic data. Note that our analysis may not take into account the latest record -sensitive announcements or qualitative material. Simply Wall Street has no position in the stocks mentioned.