Stock Analysis

Shareholders Of UMH Properties (NYSE:UMH) Must Be Happy With Their 95% Return

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NYSE:UMH
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If you buy and hold a stock for many years, you'd hope to be making a profit. Furthermore, you'd generally like to see the share price rise faster than the market Unfortunately for shareholders, while the UMH Properties, Inc. (NYSE:UMH) share price is up 49% in the last five years, that's less than the market return. Unfortunately the share price is down 4.2% in the last year.

See our latest analysis for UMH Properties

Because UMH Properties made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years UMH Properties saw its revenue grow at 13% per year. That's a fairly respectable growth rate. The annual gain of 8% over five years is better than nothing, but falls short of the market. Arguably, that means, the market (previously) expected stronger growth from the company.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NYSE:UMH Earnings and Revenue Growth December 22nd 2020

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on UMH Properties

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of UMH Properties, it has a TSR of 95% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

UMH Properties shareholders gained a total return of 1.0% during the year. But that return falls short of the market. If we look back over five years, the returns are even better, coming in at 14% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. It's always interesting to track share price performance over the longer term. But to understand UMH Properties better, we need to consider many other factors. Even so, be aware that UMH Properties is showing 3 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 US exchanges.

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What are the risks and opportunities for UMH Properties?

UMH Properties, Inc., which was organized in 1968, is a public equity REIT that owns and operates 124 manufactured home communities containing approximately 23,400 developed homesites.

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Rewards

  • Trading at 11.4% below our estimate of its fair value

  • Earnings are forecast to grow 129.71% per year

Risks

  • Shareholders have been diluted in the past year

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