Those who invested in Carlyle Group (NASDAQ:CG) five years ago are up 76%


The main purpose of long-term investing is to make money. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the The Carlyle Group Inc. (NASDAQ:CG) The stock price is up 40% in the last five years, that’s less than the market’s return. But if you include dividends, the yield is above the market. Last year was disappointing, with the stock price dropping 32% during that time.

Let’s take a look at the longer term underlying fundamentals and see if they have been consistent with shareholder returns.

However, if you’re not interested in finding out what drove CG’s performance, we have a free list of interesting investment ideas to potentially inspire your next investment!

It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of ​​how investors’ attitudes toward a company change over time.

In five years of share price growth, Carlyle Group has achieved compound earnings per share (EPS) growth of 29% per year. This EPS growth is greater than the average annual share price increase of 7%. So it seems that the market is not so enthusiastic about the title these days. This cautious sentiment is reflected in its (rather low) P/E ratio of 5.98.

You can see how EPS has changed over time in the image below (click on the graph to see the exact values).

NasdaqGS: CG Earnings Per Share Growth September 11, 2022

Dive deeper into key Carlyle Group metrics with this interactive chart of Carlyle Group earnings, revenue and cash flow.

What about dividends?

It is important to consider the total shareholder return, as well as the stock price return, for a given stock. TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. It’s fair to say that the TSR gives a more complete picture of stocks that pay a dividend. Note that for Carlyle Group the TSR over the last 5 years was 76%, which is better than the share price return mentioned above. This is largely the result of its dividend payments!

A different perspective

While the broader market lost around 14% in the twelve months, Carlyle Group shareholders fared even worse, losing 30% (even including dividends). However, it could simply be that the stock price was impacted by greater market jitters. It might be worth keeping an eye on the fundamentals, in case there is a good opportunity. On the positive side, long-term shareholders have made money, with a gain of 12% per year over half a decade. If fundamentals continue to point to sustainable long-term growth, the current sell-off could be an opportunity to consider. While it is worth considering the various impacts that market conditions can have on the stock price, there are other, even more important factors. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Carlyle Group (2 of which should not be ignored!) that you should know.

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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