Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) jumps 5.1% this week, though earnings growth is still tracking behind five-year shareholder returns

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. One great example is Loma Negra Compañía Industrial Argentina Sociedad Anónima (NYSE:LOMA) which saw its share price drive 109% higher over five years. Also pleasing for shareholders was the 65% gain in the last three months.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 the five years of share price growth, Loma Negra Compañía Industrial Argentina Sociedad Anónima moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Loma Negra Compañía Industrial Argentina Sociedad Anónima has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Loma Negra Compañía Industrial Argentina Sociedad Anónima stock, you should check out this FREE detailed report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered Loma Negra Compañía Industrial Argentina Sociedad Anónima'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. Loma Negra Compañía Industrial Argentina Sociedad Anónima's TSR of 194% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

While the broader market gained around 13% in the last year, Loma Negra Compañía Industrial Argentina Sociedad Anónima shareholders lost 3.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 24%, 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 Loma Negra Compañía Industrial Argentina Sociedad Anónima is showing 2 warning signs in our investment analysis , you should know about...

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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 American exchanges.

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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.