Stock Analysis

Share Price Aside, Corpfin Capital Prime Retail II SOCIMI (BME:YPR2) Has Delivered Shareholders A 43% Return.

BME:PR2
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Investors are understandably disappointed when a stock they own declines in value. But when the market is down, you're bound to have some losers. While the Corpfin Capital Prime Retail II, SOCIMI, S.A. (BME:YPR2) share price is down 63% in the last three years, the total return to shareholders (which includes dividends) was 43%. That's better than the market which declined 7.4% over the last three years.

Check out our latest analysis for Corpfin Capital Prime Retail II SOCIMI

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Corpfin Capital Prime Retail II SOCIMI saw its EPS decline at a compound rate of 30% per year, over the last three years. This change in EPS is reasonably close to the 28% average annual decrease in the share price. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. In this case, it seems that the EPS is guiding the share price.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

earnings-per-share-growth
BME:YPR2 Earnings Per Share Growth November 19th 2020

This free interactive report on Corpfin Capital Prime Retail II SOCIMI's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Corpfin Capital Prime Retail II SOCIMI's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Corpfin Capital Prime Retail II SOCIMI hasn't been paying dividends, but its TSR of 43% exceeds its share price return of -63%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

While it's certainly disappointing to see that Corpfin Capital Prime Retail II SOCIMI shares lost throughout the year, that wasn't as bad as the market loss of 7.8%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 8% for each year. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand Corpfin Capital Prime Retail II SOCIMI better, we need to consider many other factors. For example, we've discovered 3 warning signs for Corpfin Capital Prime Retail II SOCIMI 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 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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