Graphic Packaging Holding's share price has climbed 69% in five years, easily topping the market return of 46% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 12% in the last year, including dividends.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long-term performance, or if there are some discrepancies.

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, Graphic Packaging Holding achieved compound earnings per share (EPS) growth of 16% per year. This EPS growth is higher than the 11% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.

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What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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 of stocks that pay a dividend. In the case of Graphic Packaging Holding, it has had a TSR of 86% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

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A Different Perspective

It's nice to see that Graphic Packaging Holding shareholders have received a total shareholder return of 12% over the last year. Of course, that includes the dividend. Having said that, the five-year TSR of 13% a year, is even better. I find it very interesting to look at share price over the long term as a proxy for business performance.