Those who invested in Uoa Real Estate Investment (KLSE:UOAREIT) five years ago are up 2.2%
It’s possible to achieve returns close to the market-weighted average return by buying an index fund. A talented investor can beat the market with a diversified portfolio, but even then, some stocks will underperform. while the Uoa Real Estate Investment (KLSE:UOAREIT) share price is down 28% over half a decade, the total return to shareholders (which includes dividends) was 2.2%. And that total return actually beats the market decline of 4.9%.
Now let’s have a look at the company’s fundamentals, and see if the long-term shareholder return has matched the performance of the underlying business.
See our latest analysis for Uoa Real Estate Investment
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Looking back five years, both Uoa Real Estate Investment’s share price and EPS declined; the latter at a rate of 9.8% per year. This fall in the EPS is worse than the 6% compound annual share price fall. The relatively muted share price reaction might be because the market expects the business to turn around.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
earnings-per-share-growth
It might be well worth while taking a look at our free report on Uoa Real Estate Investment’s earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Uoa Real Estate Investment, it has a TSR of 2.2% 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
We’re pleased to report that Uoa Real Estate Investment shareholders have received a total shareholder return of 9.8% over one year. That’s including the dividend. That’s better than the annualized return of 0.4% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we’ve identified 2 warning signs for Uoa Real Estate Investment (1 is a bit unpleasant) that you should be aware of.
Of course Uoa Real Estate Investment may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on MY 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.
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