Introducing Shurgard Self Storage (EBR:SHUR), A Stock That Climbed 26% In The Last Year

Passive investing in index funds can generate returns that roughly match the overall market. But you can significantly boost your returns by picking above-average stocks. For example, the Shurgard Self Storage S.A. (EBR:SHUR) share price is up 26% in the last year, clearly besting the market decline of around 21% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! Shurgard Self Storage hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Shurgard Self Storage

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. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last year Shurgard Self Storage grew its earnings per share (EPS) by 38%. It's fair to say that the share price gain of 26% did not keep pace with the EPS growth. So it seems like the market has cooled on Shurgard Self Storage, despite the growth. Interesting.

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

We know that Shurgard Self Storage has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Shurgard Self Storage will grow revenue in the future.

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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Shurgard Self Storage the TSR over the last year was 29%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!

A Different Perspective

Shurgard Self Storage boasts a total shareholder return of 29% for the last year (that includes the dividends) . A substantial portion of that gain has come in the last three months, with the stock up 23% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Shurgard Self Storage better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Shurgard Self Storage you should know about.

But note: Shurgard Self Storage may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

When trading Shurgard Self Storage or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on 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.