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Qatar Electricity & Water Company Q.P.S.C (DSM:QEWS) shareholders notch a 1.5% CAGR over 3 years, yet earnings have been shrinking

Simply Wall St · 06/29 07:49

It can certainly be frustrating when a stock does not perform as hoped. But it can difficult to make money in a declining market. The Qatar Electricity & Water Company Q.P.S.C. (DSM:QEWS) is down 11% over three years, but the total shareholder return is 4.6% once you include the dividend. That's better than the market which declined 2.0% over the last three years.

While the stock has risen 4.2% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

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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 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.

Qatar Electricity & Water Company Q.P.S.C saw its EPS decline at a compound rate of 2.3% per year, over the last three years. This reduction in EPS is slower than the 4% annual reduction in the share price. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy.

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
DSM:QEWS Earnings Per Share Growth June 29th 2025

This free interactive report on Qatar Electricity & Water Company Q.P.S.C's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

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 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Qatar Electricity & Water Company Q.P.S.C, it has a TSR of 4.6% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Qatar Electricity & Water Company Q.P.S.C shareholders gained a total return of 6.4% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 4% over half a decade This could indicate that the company is winning over new investors, as it pursues its strategy. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with Qatar Electricity & Water Company Q.P.S.C .

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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 Qatari exchanges.