Investors Who Bought Senioresidenz (BRN:SENIO) Shares A Year Ago Are Now Up 11%

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. For example, the Senioresidenz AG (BRN:SENIO) share price is up 11% in the last year, clearly besting the market return of around 0.6% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Senioresidenz for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Senioresidenz

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 the last year Senioresidenz grew its earnings per share (EPS) by 104%. It's fair to say that the share price gain of 11% did not keep pace with the EPS growth. So it seems like the market has cooled on Senioresidenz, despite the growth. Interesting.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

This free interactive report on Senioresidenz's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

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 incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Senioresidenz's TSR for the last year was 15%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Senioresidenz boasts a total shareholder return of 15% for the last year (that includes the dividends) . The more recent returns haven't been as impressive as the longer term returns, coming in at just 0.4%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). 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. Case in point: We've spotted 3 warning signs for Senioresidenz you should be aware of, and 2 of them make us uncomfortable.

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 CH 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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