bpost's (EBR:BPOST) Shareholders Are Down 62% On Their Shares

While it may not be enough for some shareholders, we think it is good to see the bpost SA/NV (EBR:BPOST) share price up 18% in a single quarter. But over the last three years we've seen a quite serious decline. Indeed, the share price is down a tragic 62% in the last three years. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

See our latest analysis for bpost

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

During the three years that the share price fell, bpost's earnings per share (EPS) dropped by 23% each year. This fall in EPS isn't far from the rate of share price decline, which was 27% per year. That suggests that the market sentiment around the company hasn't changed much over that time, despite the disappointment. In this case, it seems that the EPS is guiding the share price.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on bpost's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between bpost's total shareholder return (TSR) and its share price change, which we've covered above. 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 bpost shareholders, and that cash payout explains why its total shareholder loss of 55%, over the last 3 years, isn't as bad as the share price return.

A Different Perspective

Although it hurts that bpost returned a loss of 6.7% in the last twelve months, the broader market was actually worse, returning a loss of 7.4%. Of far more concern is the 8% p.a. loss served to shareholders over the last five years. While the losses are slowing we doubt many shareholders are happy with the stock. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with bpost , and understanding them should be part of your investment process.

But note: bpost 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.

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