In This Article:
When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Ströer SE & Co. KGaA (ETR:SAX) stock is up an impressive 299% over the last five years. It's also good to see the share price up 13% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.
View our latest analysis for Ströer SE KGaA
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, Ströer SE KGaA achieved compound earnings per share (EPS) growth of 65% per year. The EPS growth is more impressive than the yearly share price gain of 32% over the same period. So one could conclude that the broader market has become more cautious towards the stock.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Dive deeper into Ströer SE KGaA's key metrics by checking this interactive graph of Ströer SE KGaA's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. We note that for Ströer SE KGaA the TSR over the last 5 years was 342%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that Ströer SE KGaA shareholders have received a total shareholder return of 38% over one year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 35% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Is Ströer SE KGaA cheap compared to other companies? These 3 valuation measures might help you decide.