CTS Eventim KGaA's (ETR:EVD) 27% CAGR outpaced the company's earnings growth over the same five-year period

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19-05-2025

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of CTS Eventim AG & Co. KGaA (ETR:EVD) stock is up an impressive 213% over the last five years. It's also up 15% in about a month. But this could be related to good market conditions -- stocks in its market are up 9.0% in the last month.
The past week has proven to be lucrative for CTS Eventim KGaA investors, so let's see if fundamentals drove the company's five-year performance.
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To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
Over half a decade, CTS Eventim KGaA managed to grow its earnings per share at 19% a year. This EPS growth is lower than the 26% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that CTS Eventim KGaA has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at CTS Eventim KGaA's financial health with this free report on its balance sheet.
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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, CTS Eventim KGaA's TSR for the last 5 years was 224%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
We're pleased to report that CTS Eventim KGaA shareholders have received a total shareholder return of 40% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 27% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand CTS Eventim KGaA better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with CTS Eventim KGaA , and understanding them should be part of your investment process.
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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges.
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