The FCR Immobilien (ETR:FC9) Share Price Has Gained 11% And Shareholders Are Hoping For More

We believe investing is smart because history shows that stock markets go higher in the long term. But if you choose that path, you're going to buy some stocks that fall short of the market. For example, the FCR Immobilien AG (ETR:FC9), share price is up over the last year, but its gain of 11% trails the market return. We'll need to follow FCR Immobilien for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

Check out our latest analysis for FCR Immobilien

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

FCR Immobilien was able to grow EPS by 83% in the last twelve months. This EPS growth is significantly higher than the 11% increase in the share price. So it seems like the market has cooled on FCR Immobilien, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 8.63.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that FCR Immobilien has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. In the case of FCR Immobilien, it has a TSR of 16% for the last year. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

We're happy to report that FCR Immobilien are up 16% over the year (even including dividends). The bad news is that's no better than the average market return, which was roughly 79%. The last three months haven't been great for shareholder returns, since the share price has trailed the market by 16% in the last three months. It might be that investors are more concerned about the business lately due to some fundamental change (or else the share price simply got ahead of itself, previously). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 6 warning signs for FCR Immobilien (1 doesn't sit too well with us!) that you should be aware of before investing here.

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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