Did You Participate In Any Of TAG Immobilien's (ETR:TEG) Fantastic 180% Return ?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of TAG Immobilien AG (ETR:TEG) stock is up an impressive 129% over the last five years. We note the stock price is up 5.7% in the last seven days.

Check out our latest analysis for TAG 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. 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 five years of share price growth, TAG Immobilien achieved compound earnings per share (EPS) growth of 24% per year. The EPS growth is more impressive than the yearly share price gain of 18% over the same period. So one could conclude that the broader market has become more cautious towards the stock. The reasonably low P/E ratio of 10.35 also suggests market apprehension.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that TAG Immobilien has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling TAG Immobilien stock, you should check out this FREE detailed report on its balance sheet.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. In the case of TAG Immobilien, it has a TSR of 180% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

It's good to see that TAG Immobilien has rewarded shareholders with a total shareholder return of 20% in the last twelve months. And that does include the dividend. Having said that, the five-year TSR of 23% a year, is even better. It's always interesting to track share price performance over the longer term. But to understand TAG Immobilien better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for TAG Immobilien you should be aware of, and 2 of them are a bit concerning.

But note: TAG Immobilien 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 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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