Shareholders Of Shopping Centres Australasia Property Group (ASX:SCP) Must Be Happy With Their 64% Return

The main point of investing for the long term is to make money. But more than that, you probably want to see it rise more than the market average. But Shopping Centres Australasia Property Group (ASX:SCP) has fallen short of that second goal, with a share price rise of 24% over five years, which is below the market return. However, if you include the dividends then the return is market beating. Unfortunately the share price is down 0.8% in the last year.

See our latest analysis for Shopping Centres Australasia Property Group

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 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, Shopping Centres Australasia Property Group actually saw its EPS drop 16% per year.

The strong decline in earnings per share suggests the market isn't using EPS to judge the company. Given that EPS is down, but the share price is up, it seems clear the market is focussed on other aspects of the business, at the moment.

In fact, the dividend has increased over time, which is a positive. Maybe dividend investors have helped support the share price. We'd posit that the revenue growth over the last five years, of 13% per year, would encourage people to invest.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. So it makes a lot of sense to check out what analysts think Shopping Centres Australasia Property Group will earn in the future (free profit forecasts).

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Shopping Centres Australasia Property Group the TSR over the last 5 years was 64%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that Shopping Centres Australasia Property Group has rewarded shareholders with a total shareholder return of 4.3% in the last twelve months. And that does include the dividend. However, the TSR over five years, coming in at 10% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Shopping Centres Australasia Property Group better, we need to consider many other factors. Even so, be aware that Shopping Centres Australasia Property Group is showing 4 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

Shopping Centres Australasia Property Group is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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

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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.
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