By buying an index fund, investors can approximate the average market return. But if you pick the right individual stocks, you could make more than that. For example, the Triton International Limited (NYSE:TRTN) share price is up 93% in the last three years, clearly besting the market return of around 36% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 15% in the last year , including dividends .
Although Triton International has shed US$151m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.
See our latest analysis for Triton International
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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).
Triton International was able to grow its EPS at 35% per year over three years, sending the share price higher. The average annual share price increase of 24% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat. This cautious sentiment is reflected in its (fairly low) P/E ratio of 5.77.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
NYSE:TRTN Earnings Per Share Growth August 28th 2022
We know that Triton International has improved its bottom line over the last three years, but what does the future have in store? You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Triton International, it has a TSR of 125% 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
We're pleased to report that Triton International shareholders have received a total shareholder return of 15% over one year. And that does include the dividend. However, the TSR over five years, coming in at 16% 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Triton International (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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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.
通过购买指数基金,投资者可以接近平均市场回报。但如果你选择了正确的个股,你可以赚得更多。例如,Triton国际有限公司(纽约证券交易所代码:TRTN)股价在过去三年中上涨了93%,显然超过了约36%的市场回报率(不包括股息)。然而,最近的回报没有那么令人印象深刻,包括股息在内,该股去年的回报率仅为15%。
尽管Triton International本周市值缩水1.51亿美元,但让我们来看看其较长期的基本面趋势,看看它们是否推动了回报。
查看我们对Triton International的最新分析
用巴菲特的话说,“船只将在世界各地航行,但平坦的地球协会将蓬勃发展。市场上的价格和价值之间将继续存在巨大的差异……”考察市场情绪如何随时间变化的一种方法是观察一家公司的股价和每股收益(EPS)之间的相互作用。
Triton International能够在三年内以每年35%的速度增长每股收益,推动股价走高。平均每年24%的股价涨幅实际上低于每股收益的涨幅。因此,市场似乎在一定程度上降低了对增长的预期。这种谨慎的情绪反映在(相当低的)市盈率5.77。
您可以在下图中看到EPS是如何随着时间的推移而变化的(单击图表可查看精确值)。
纽约证券交易所:TRTN每股收益增长2022年8月28日
我们知道Triton International在过去三年里提高了利润,但未来会是什么样子?你可以看到它的资产负债表是如何随着时间的推移而加强(或削弱)的免费交互式图形。
那股息呢?
除了衡量股价回报外,投资者还应考虑总股东回报(TSR)。TSR是一种回报计算,计入了现金股息的价值(假设收到的任何股息都进行了再投资),以及任何贴现融资和剥离的计算价值。可以说,TSR更全面地描绘了一只股票产生的回报。就Triton International而言,它在过去3年的TSR为125%。这超过了我们之前提到的它的股价回报。该公司支付的股息因此提振了总计股东回报。
不同的视角
我们很高兴地报告,Triton International的股东在一年内获得了15%的总股东回报。这确实包括了股息。然而,五年来的TSR,以每年16%的速度增长,更令人印象深刻。我发现,把股价作为衡量企业业绩的长期指标是非常有趣的。但为了真正获得洞察力,我们还需要考虑其他信息。例如,考虑一下无处不在的投资风险幽灵。我们已经确定了三个警告信号与Triton International合作(至少有1个不应被忽视),了解它们应该是你投资过程的一部分。
如果你更愿意看看另一家公司--一家财务状况可能更好的公司--那么不要错过这一点免费已证明自己能够实现盈利增长的公司名单。
请注意,本文引用的市场回报反映了目前在美国交易所交易的股票的市场加权平均回报。
对这篇文章有什么反馈吗?担心内容吗? 保持联系直接与我们联系。或者,也可以给编辑组发电子邮件,地址是implywallst.com。
本文由Simply Wall St.撰写,具有概括性。我们仅使用不偏不倚的方法提供基于历史数据和分析师预测的评论,我们的文章并不打算作为财务建议。它不构成买卖任何股票的建议,也没有考虑你的目标或你的财务状况。我们的目标是为您带来由基本面数据驱动的长期重点分析。请注意,我们的分析可能不会将最新的对价格敏感的公司公告或定性材料考虑在内。Simply Wall St.对上述任何一只股票都没有持仓。