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One simple way to benefit from the stock market is to buy an index fund. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at Bijou Brigitte modische Accessoires Aktiengesellschaft (ETR:BIJ), which is up 61%, over three years, soundly beating the market decline of 16% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 1.7%, including dividends.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
Check out our latest analysis for Bijou Brigitte modische Accessoires
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).
Bijou Brigitte modische Accessoires became profitable within the last three years. That would generally be considered a positive, so we'd expect the share price to be up.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on Bijou Brigitte modische Accessoires' earnings, revenue and cash flow.
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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Bijou Brigitte modische Accessoires, it has a TSR of 94% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
A Different Perspective
Bijou Brigitte modische Accessoires provided a TSR of 1.7% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 3% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Bijou Brigitte modische Accessoires better, we need to consider many other factors. Take risks, for example - Bijou Brigitte modische Accessoires has 2 warning signs we think you should be aware of.