If You Had Bought Phoenix Mills (NSE:PHOENIXLTD) Shares Five Years Ago You'd Have Earned 68% Returns

The Phoenix Mills Limited (NSE:PHOENIXLTD) shareholders have seen the share price descend 11% over the month. Looking further back, the stock has generated good profits over five years. It has returned a market beating 68% in that time. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 22% decline over the last twelve months.

See our latest analysis for Phoenix Mills

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over half a decade, Phoenix Mills managed to grow its earnings per share at 34% a year. The EPS growth is more impressive than the yearly share price gain of 11% over the same period. So one could conclude that the broader market has become more cautious towards the stock. Having said that, the market is still optimistic, given the P/E ratio of 54.36.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Phoenix Mills' key metrics by checking this interactive graph of Phoenix Mills's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Phoenix Mills' total shareholder return (TSR) and its 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. Dividends have been really beneficial for Phoenix Mills shareholders, and that cash payout contributed to why its TSR of 72%, over the last 5 years, is better than the share price return.

A Different Perspective

While the broader market gained around 3.9% in the last year, Phoenix Mills shareholders lost 22%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 11%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Phoenix Mills better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Phoenix Mills (of which 1 is significant!) you should know about.

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

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

If you’re looking to trade Phoenix Mills, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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