What Type Of Returns Would Boustead Projects'(SGX:AVM) Shareholders Have Earned If They Purchased Their SharesYear Ago?

The simplest way to benefit from a rising market is to buy an index fund. When you buy individual stocks, you can make higher profits, but you also face the risk of under-performance. Unfortunately the Boustead Projects Limited (SGX:AVM) share price slid 22% over twelve months. That's well below the market decline of 17%. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 15% in three years. Unhappily, the share price slid 2.0% in the last week.

Check out our latest analysis for Boustead Projects

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).

Unhappily, Boustead Projects had to report a 27% decline in EPS over the last year. This fall in the EPS is significantly worse than the 22% the share price fall. It may have been that the weak EPS was not as bad as some had feared.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

Dive deeper into Boustead Projects' key metrics by checking this interactive graph of Boustead Projects's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We've already covered Boustead Projects' share price action, but we should also mention its total shareholder return (TSR). 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 Boustead Projects shareholders, and that cash payout explains why its total shareholder loss of 21%, over the last year, isn't as bad as the share price return.

A Different Perspective

While the broader market lost about 17% in the twelve months, Boustead Projects shareholders did even worse, losing 21% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 1.9%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Boustead Projects better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Boustead Projects you should be aware of, and 1 of them is concerning.

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 SG 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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