The Importance of Value Creation
Value creation for shareholders has emerged as a fundamental objective for publicly traded companies. This concept, now a cornerstone of modern finance, has led to the development of various metrics for assessment, including Economic Value Added (EVA), Return on Capital Employed minus Weighted Average Cost of Capital (ROCE-WACC), Price-to-Book ratios, and Total Shareholder Return (TSR).
Understanding Total Shareholder Return
TSR serves as a comprehensive measure of the overall performance delivered to shareholders, factoring in both stock price changes and cumulative dividends received during the period, treated as non-reinvested. Unlike a narrow focus on stock price fluctuations, TSR provides a more holistic and economically accurate representation of an investment's profitability.
Expressed as a percentage, TSR is evaluated over a sufficiently long horizon to smooth out market volatility. It effectively reflects the performance of an investor who purchased shares at the beginning of the period— or at the IPO price— collected dividends over the years, and then valued their position at the last observed price in 2025.
The Context of the Analysis
The period from 2020 to 2025 is particularly significant for analyzing stock value creation, characterized by a series of crises and high volatility. This includes the COVID-19 pandemic, the onset of the war in Ukraine, and rising global inflationary pressures. Thus, the ability of listed companies to sustain shareholder value creation across various economic cycles serves as a relevant benchmark for assessing their fundamental strength.
The analysis focuses on the constituents of the MASI 20 index at the study's closing date, allowing for a comparison of value creation among a homogeneous set of the most liquid capitalizations. Given that the MASI 20 is periodically revised— with the last adjustment in October 2026— its composition may differ from that observed at the beginning of the analyzed period.
Identifying the Value Creation Champions
The examination of TSR highlights the companies that have most effectively rewarded their shareholders over the past five years. Jet Contractors, Alliances, and Sonasid emerge as the standout performers, boasting TSRs exceeding 840%. TGCC follows closely with a TSR near 590%, underscoring the strong momentum within the construction and public works sector.
These exceptional performances reflect significant stock recovery trajectories, supported by noticeable improvements in fundamentals, favorable sector cycles, and, in some cases, attractive distribution policies.
In a second tier, Marsa Maroc, Akdital, and Addoha report TSRs ranging from 250% to 380%, indicating robust and sustainable value creation during the period.
Recent IPOs and Their Impact
Notably, some recent IPOs, despite their limited historical data, are already generating significant value for their shareholders. Akdital, CFG Bank, and CMGP Group exemplify the ability to create value rapidly in the early years of trading.
Challenges Faced by Certain Companies
Conversely, some companies exhibit attractive yields but report negative TSRs. Maroc Telecom serves as a prominent example; despite a cumulative yield of approximately 10.8% during the period, it shows a negative TSR, as the decline in stock price has more than offset the positive impact of dividends.
This case illustrates that dividends alone do not guarantee wealth creation for shareholders when the stock's price trajectory remains structurally impaired.
