Yahoo Finance Those who invested in Müller - Die lila Logistik (ETR:MLL) five years ago are up 39%
When we invest, we're generally looking for stocks that outperform the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Müller - Die lila Logistik SE (ETR:MLL) shareholders have enjoyed a 11% share price rise over the last half decade, well in excess of the market return of around 2.1% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 5.0%.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
Check out our latest analysis for Müller - Die lila Logistik
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
Over half a decade, Müller - Die lila Logistik managed to grow its earnings per share at 12% a year. We note, however, that extraordinary items have impacted earnings. This EPS growth is higher than the 2% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into Müller - Die lila Logistik's key metrics by checking this interactive graph of Müller - Die lila Logistik's earnings, revenue and cash flow.
What About The Total Shareholder Return (TSR)?
Investors should note that there's a difference between Müller - Die lila Logistik's total shareholder return (TSR) and its share price change, which we've covered above. 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. Its history of dividend payouts mean that Müller - Die lila Logistik's TSR of 39% over the last 5 years is better than the share price return.
A Different Perspective
It's nice to see that Müller - Die lila Logistik shareholders have received a total shareholder return of 5.0% over the last year. However, the TSR over five years, coming in at 7% per year, is even more impressive. 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 Müller - Die lila Logistik is showing 2 warning signs in our investment analysis , you should know about...
We will like Müller - Die lila Logistik better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
