Cognor Holding (WSE:COG) rallies 15% this week, taking five-year gains to 907%

Simply Wall St · 04/15 06:32

For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. For example, the Cognor Holding S.A. (WSE:COG) share price is up a whopping 720% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 18% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 15% in 90 days). It really delights us to see such great share price performance for investors.

Since the stock has added zł182m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Our free stock report includes 1 warning sign investors should be aware of before investing in Cognor Holding. Read for free now.

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Cognor Holding achieved compound earnings per share (EPS) growth of 21% per year. This EPS growth is slower than the share price growth of 52% per year, over the same period. 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).

earnings-per-share-growth
WSE:COG Earnings Per Share Growth April 15th 2025

Dive deeper into Cognor Holding's key metrics by checking this interactive graph of Cognor Holding's earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

We've already covered Cognor Holding's share price action, but we should also mention its total shareholder return (TSR). 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. Its history of dividend payouts mean that Cognor Holding's TSR of 907% over the last 5 years is better than the share price return.

A Different Perspective

Cognor Holding shareholders are down 18% for the year, but the market itself is up 11%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 59%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Cognor Holding is showing 1 warning sign in our investment analysis , you should know about...

But note: Cognor Holding 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 Polish exchanges.