Can You Imagine How City Pub Group's (LON:CPC) Shareholders Feel About The 43% Share Price Increase?

Simply Wall St
·2 min read

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). To wit, the The City Pub Group plc (LON:CPC) share price is 43% higher than it was a year ago, much better than the market return of around 21% (not including dividends) in the same period. So that should have shareholders smiling. Zooming out, the stock is actually down 35% in the last three years.

Check out our latest analysis for City Pub Group

City Pub Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

City Pub Group actually shrunk its revenue over the last year, with a reduction of 57%. The stock is up 43% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think City Pub Group will earn in the future (free profit forecasts).

A Different Perspective

Pleasingly, City Pub Group's total shareholder return last year was 43%. What is absolutely clear is that is far preferable to the dismal 10% average annual loss suffered over the last three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Recommended Stories

  • China, Philippines swap protests over Manila-occupied island

    The Philippines has demanded that China withdraw its ships and fishing vessels from the vicinity of a Philippine-occupied island in the South China Sea, where the Chinese military has asserted its sovereignty and vowed to “unswervingly safeguard” the disputed territory. The Department of Foreign Affairs in Manila said Saturday it has filed a diplomatic protest against “the incessant deployment, prolonged presence and illegal activities of Chinese maritime assets and fishing vessels in the vicinity of the Pag-asa islands.” It used the Philippine name for Thitu, which China calls Zhongye Dao.

  • Chinese city locks down neighborhood after virus upsurge

    The southern Chinese city of Guangzhou shut down a neighborhood and ordered its residents to stay home Saturday for door-to-door coronavirus testing following an upsurge in infections that has rattled authorities. Guangzhou, a business and industrial center of 15 million people north of Hong Hong, has reported 20 new infections over the past week. The number is small compared with India’s thousands of daily cases but alarmed Chinese authorities who believed they had the disease under control.

  • Here's what changes with COVID-19 restrictions expiring

    Most COVID-19 restrictions will go away as of Saturday, but some businesses and industries will keep the requirement in place.

  • 'Apple is eating our lunch': Google employees admit in lawsuit that the company made it nearly impossible for users to keep their location private

    Google misled phone makers into hiding privacy settings users liked in order to collect more location data, according to newly unredacted documents.

  • Philippines protests China's 'illegal' South China Sea presence

    The Philippines has protested China's continuing "illegal presence and activities" near an island in the South China Sea held by the Southeast Asian nation, the foreign ministry said on Saturday. Manila lodged the diplomatic protest on Friday over the "incessant deployment, prolonged presence, and illegal activities of Chinese maritime assets and fishing vessels" in the vicinity of Thitu island.

  • U.S. government seeks to dismiss suit against Trump, Washington Post says

    The U.S. Justice Department on Friday asked a federal judge to dismiss a lawsuit filed against former President Donald Trump, former Attorney General William Barr and other officials over the forceful pushing back of peaceful protesters at a White House demonstration last year, the Washington Post reported. Trump and other U.S. officials should be considered immune from civil lawsuits over police actions taken to protect a president and to secure his movements, the Justice Department lawyers said, according to the Post. The lawsuit was filed by the American Civil Liberties Union and other groups over the treatment of protesters at a demonstration against racism and police brutality on June 1, 2020, in the aftermath of the death of George Floyd, a 46-year-old Black man, in Minneapolis after a white police officer knelt on his neck for more than nine minutes.

  • Marjorie Taylor Greene blasts Democrats for comparing Republicans to Nazis, then compares Democrats to Nazis

    ‘That’s a mean, nasty, dirty word,’ Republican says, before adding, ‘You know, Nazis were the National Socialist Party, just like the Democrats are now a national socialist party’

  • Doral police deny giving ‘heavily intoxicated’ Schools Police sergeant favorable treatment

    social pitch: “BLM motherfu--er” quote

  • Belarusians increasingly cornered after EU cuts air links

    As fear of repression rises among Belarusians following the arrest of a dissident journalist whose plane was forcibly diverted to Minsk, those who want to leave the country are feeling increasingly cornered. Its land borders already were under tight restrictions, and now the European Union has banned flights from Belarus after a jetliner was diverted to Minsk earlier this week and authorities arrested a dissident journalist who was aboard.

  • School denies diplomas for two Texas students who wore military sashes to graduation

    “They put them on after they sat down, which is against our guidelines for graduation.”

  • Amid worries about China's growing navy, the US Navy is only asking for 4 new combat ships next year

    The latest budget request asks for just eight ships, only four of which are warships, as China continues to grow its naval fleet.

  • Man convicted of murdering Iowa college student Mollie Tibbetts

    The convicted killer, Cristhian Bahena Rivera, abducted the victim while she was out on a jog in Brooklyn, Iowa, in 2018.

  • New Yahoo News/YouGov poll: U.S. COVID worries fall to lowest level ever ahead of Memorial Day

    As America prepares to celebrate the start of another summer, the latest data demonstrates just how dramatically things have changed — for the better.

  • Canada mourns as remains of 215 children found at indigenous school

    The mass grave was found during a survey of the former residential school for indigenous people.

  • Remains of 215 children found at former indigenous school site in Canada

    TORONTO (Reuters) -The remains of 215 children, some as young as three years old, were found at the site of a former residential school for indigenous children, a discovery Canadian Prime Minister Justin Trudeau described as heartbreaking on Friday. The children were students at the Kamloops Indian Residential School in British Columbia that closed in 1978, according to the Tk'emlúps te Secwépemc Nation, which said the remains were found with the help of a ground penetrating radar specialist. "We had a knowing in our community that we were able to verify," Tk'emlúps te Secwépemc Chief Rosanne Casimir said in a statement.

  • Police officer who mocked LeBron James fired for violating city and state policies

    Police officer with words for LeBron James sacked for posting them on TikTok

  • Child dies after stray bullet hit her while she was bouncing on trampoline

    Business leaders offer $30,000 reward after three children shot in city in past month

  • How to tell if you have a faulty appetite gene

    Imagine there was a trigger for weight which caused you to pile on the pounds – on average two and a half stone heavier than you otherwise would be. Sometimes much more. Now imagine that such a trigger exists, but it is not greed, or fecklessness. Instead it is a gene, a strip of chemical coding in our DNA, which revolutionises some people’s very perception of food while leaving others untouched. Would that cause you to look at obesity differently? Or reconsider, even, what is within individual human control, and what lies beyond? These are the fundamental questions raised by research published this week. A team from the University of Cambridge has discovered that mutations in a single gene called MC4R are capable of scrambling the brain’s perception of food and fullness. MC4R stands for melanocortin 4 receptor; melanocortin is a vital part of the critical system that the body uses to sense and determine fat stores. “MC4R’s job is to tell you to stop eating after a meal,” says Sadaf Farooqi, Professor of Metabolism and Medicine at Addenbrooke’s Hospital. “If it’s not working you don’t get that signal.” The impact on fat mass and weight of a malfunctioning MC4R are, the paper notes, detectable as early as five years old. By the time carriers of the same broken gene hit 18, they are 18kg heavier than those with a working MC4R. “MC4R is the volume dial,” says Farooqi. “If it’s not working even partially people gain weight; if it’s not working completely people gain a lot of weight.” Some of its impact, says Farooqi, is on how efficiently the body burns calories. But the vast majority of its effect is on perception. “Predominantly it’s about how much you want to eat.” That, says Dr Giles Yeo, also an author of the paper, is like a pilot having a malfunctioning altimeter. The pilot thinks and responds as if they are cruising normally at 30,000ft, when in fact they are dangerously close to the ground. So the person with the disrupted MC4R thinks they need to eat more, and feels hungry, when in fact their body requires no more food. “We all have those moments when you feel hungry and wander downstairs to stare into the fridge,” he says. “It’s that level of hunger.” Except all the time.

  • Biden's defense budget aims to curb China, gives troops 2.7% raise

    WASHINGTON (Reuters) -U.S. President Joe Biden's $715 billion Department of Defense budget includes a 2.7% pay raise for troops and shifts billions in spending from old systems to help pay to modernize the nuclear arsenal to deter China. The defense spending request for fiscal 2022, which was sent to Congress on Friday, invests in troop readiness, space, the Pacific Deterrence Initiative aimed at countering China's military build-up in Asia and nuclear weapons technology. There is also money to further develop and test hypersonic weapons and other "next generation" systems as the military aims to build capabilities to counter Russia and China.

  • Gordon Ramsay shared a new burger recipe, but fans think it's way too big to eat

    "Is that a delicious way to dislocate your jaw?" one fan quipped when they saw Gordon Ramsay's burger.