The Rani Zim Shopping Centers (TLV:RANI) Share Price Has Gained 11% And Shareholders Are Hoping For More

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the Rani Zim Shopping Centers Ltd (TLV:RANI) share price is up 11% in the last year, clearly besting the market decline of around 0.5% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Rani Zim Shopping Centers 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 Rani Zim Shopping Centers

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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).

Over the last twelve months, Rani Zim Shopping Centers actually shrank its EPS by 8.8%.

Given the share price gain, we doubt the market is measuring progress with EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

Rani Zim Shopping Centers' revenue actually dropped 33% over last year. So the fundamental metrics don't provide an obvious explanation for the share price gain.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

This free interactive report on Rani Zim Shopping Centers' balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Rani Zim Shopping Centers' 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. Rani Zim Shopping Centers hasn't been paying dividends, but its TSR of 20% exceeds its share price return of 11%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

Rani Zim Shopping Centers shareholders should be happy with the total gain of 20% over the last twelve months. Unfortunately the share price is down 4.9% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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 3 warning signs for Rani Zim Shopping Centers you should be aware of, and 1 of them doesn't sit too well with us.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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