PATRIZIA (ETR:PAT) earnings and shareholder returns have been trending downwards for the last five years, but the stock ascends 8.6% this past week

While not a mind-blowing move, it is good to see that the PATRIZIA SE (ETR:PAT) share price has gained 10% in the last three months. But that doesn't change the fact that the returns over the last half decade have been disappointing. In that time the share price has delivered a rude shock to holders, who find themselves down 62% after a long stretch. Some might say the recent bounce is to be expected after such a bad drop. Of course, this could be the start of a turnaround.

The recent uptick of 8.6% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

PATRIZIA became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. Other metrics may better explain the share price move.

The steady dividend doesn't really explain why the share price is down. It could be that the revenue decline of 5.8% per year is viewed as evidence that PATRIZIA is shrinking. With revenue weak, and increased payouts of cash, the market might be taking the view that its best days are behind it.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We know that PATRIZIA has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling PATRIZIA stock, you should check out this free report showing analyst profit 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, PATRIZIA's TSR for the last 5 years was -55%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

PATRIZIA's TSR for the year was broadly in line with the market average, at 16%. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 9% over the last five years. While 'turnarounds seldom turn' there are green shoots for PATRIZIA. It's always interesting to track share price performance over the longer term. But to understand PATRIZIA better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with PATRIZIA (including 1 which shouldn't be ignored) .

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.