If You Had Bought AM Locales Property SOCIMI (BME:YAML) Stock Three Years Ago, You Could Pocket A 12% Gain Today

By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, AM Locales Property SOCIMI, S.A. (BME:YAML) shareholders have seen the share price rise 12% over three years, well in excess of the market decline (18%, not including dividends).

View our latest analysis for AM Locales Property SOCIMI

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.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between AM Locales Property SOCIMI's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for AM Locales Property SOCIMI shareholders, and that cash payout contributed to why its TSR of 16%, over the last 3 years, is better than the share price return.

A Different Perspective

While it's never nice to take a loss, AM Locales Property SOCIMI shareholders can take comfort that their trailing twelve month loss of 1.4% wasn't as bad as the market loss of around -9.0%. Longer term investors wouldn't be so upset, since they would have made 5%, each year, over three years. Given the three year returns are better than the return over the last year, it might be that the broader market has weighed on the stock recently. 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 1 warning sign for AM Locales Property SOCIMI you should be aware of.

Of course AM Locales Property SOCIMI may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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