What Are The Total Returns Earned By Shareholders Of Dasin Retail Trust (SGX:CEDU) On Their Investment?

It can certainly be frustrating when a stock does not perform as hoped. But it can difficult to make money in a declining market. While the Dasin Retail Trust (SGX:CEDU) share price is down 11% in the last three years, the total return to shareholders (which includes dividends) was 13%. That's better than the market which declined 11% over the last three years. Unhappily, the share price slid 1.9% in the last week.

View our latest analysis for Dasin Retail Trust

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

We know that Dasin Retail Trust has been profitable in the past. On the other hand, it reported a trailing twelve months loss, suggesting it isn't reliably profitable. Other metrics may better explain the share price move.

Given the healthiness of the dividend payments, we doubt that they've concerned the market. We like that Dasin Retail Trust has actually grown its revenue over the last three years. But it's not clear to us why the share price is down. It might be worth diving deeper into the fundamentals, lest an opportunity goes begging.

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

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for Dasin Retail Trust in this interactive graph of future profit estimates.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and 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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Dasin Retail Trust, it has a TSR of 13% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

While it's never nice to take a loss, Dasin Retail Trust shareholders can take comfort that , including dividends, their trailing twelve month loss of 4.3% wasn't as bad as the market loss of around -10%. Shareholders who have held for three years might be relatively sanguine about the recent weakness, given they have made 4% per year for 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Dasin Retail Trust is showing 2 warning signs in our investment analysis , you should know about...

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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