Investors Who Bought DWS Group GmbH KGaA (ETR:DWS) Shares A Year Ago Are Now Up 12%

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the DWS Group GmbH & Co. KGaA (ETR:DWS) share price is 12% higher than it was a year ago, much better than the market return of around 1.7% (not including dividends) in the same period. That's a solid performance by our standards! Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

Check out our latest analysis for DWS Group GmbH KGaA

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the last year DWS Group GmbH KGaA grew its earnings per share (EPS) by 24%. This EPS growth is significantly higher than the 12% increase in the share price. So it seems like the market has cooled on DWS Group GmbH KGaA, 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).

We know that DWS Group GmbH KGaA has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of DWS Group GmbH KGaA, it has a TSR of 17% for the last year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

DWS Group GmbH KGaA boasts a total shareholder return of 17% for the last year (that includes the dividends) . And the share price momentum remains respectable, with a gain of 25% in the last three months. 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 DWS Group GmbH KGaA better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with DWS Group GmbH KGaA .

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 DE 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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