For many, the main point of investing is to generate higher returns than the overall market. But the main game is to find enough winners to more than offset the losers At this point some shareholders may be questioning their investment in Corporate Office Properties Trust (NYSE:OFC), since the last five years saw the share price fall 22%.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
View our latest analysis for Corporate Office Properties Trust
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 the unfortunate half decade during which the share price slipped, Corporate Office Properties Trust actually saw its earnings per share (EPS) improve by 4.4% per year. Given the share price reaction, one might suspect that EPS is not a good guide to the business performance during the period (perhaps due to a one-off loss or gain). Or possibly, the market was previously very optimistic, so the stock has disappointed, despite improving EPS.
With EPS gaining and a declining share price, one would suggest the market is cooling on its view of the company. That said, if EPS continues to increase, it seems very likely the share price will get a boost, in the long term.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
NYSE:OFC Earnings Per Share Growth September 19th 2022
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. Dive deeper into the earnings by checking this interactive graph of Corporate Office Properties Trust's earnings, revenue and cash flow.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Corporate Office Properties Trust the TSR over the last 5 years was -3.8%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
While it's certainly disappointing to see that Corporate Office Properties Trust shares lost 2.2% throughout the year, that wasn't as bad as the market loss of 17%. Unfortunately, last year's performance may indicate unresolved challenges, given that it's worse than the annualised loss of 0.8% over the last half decade. Whilst Baron Rothschild does tell the investor "buy when there's blood in the streets, even if the blood is your own", buyers would need to examine the data carefully to be comfortable that the business itself is sound. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 2 warning signs for Corporate Office Properties Trust that you should be aware of.
Corporate Office Properties Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
對許多人來說,投資的主要目的是創造比整體市場更高的回報。但主要的遊戲是找到足夠多的贏家來抵消輸家在這一點上一些股東可能會質疑他們對企業辦公物業信託基金(紐約證券交易所股票代碼:OFC),自過去五年以來,股價下跌了22%。
鑑於過去一週對股東的態度一直很嚴峻,讓我們調查一下基本面,看看我們能學到什麼。
查看我們對企業辦公物業信託的最新分析
雖然市場是一種強大的定價機制,但股價反映的是投資者情緒,而不僅僅是潛在的企業表現。通過比較每股收益(EPS)和股價隨時間的變化,我們可以感受到投資者對一家公司的態度隨著時間的推移發生了怎樣的變化。
在股價下滑的不幸的五年裡,公司寫字樓物業信託公司的每股收益(EPS)實際上以每年4.4%的速度增長。考慮到股價的反應,人們可能會懷疑,每股收益不是這段時間內業務表現的良好指南(可能是因為一次性的虧損或收益)。也有可能,此前市場非常樂觀,因此儘管每股收益有所改善,但該股仍令人失望。
隨著每股收益的上漲和股價的下跌,有人會認為市場對該公司的看法正在降溫。這就是說,如果每股收益繼續增加,從長遠來看,股價很可能會得到提振。
下圖顯示了EPS是如何隨著時間的推移進行跟蹤的(如果您點擊該圖像,您可以看到更多詳細資訊)。
紐約證券交易所:OFC每股收益增長2022年9月19日
我們喜歡的是,內部人士在過去12個月一直在買入股票。話雖如此,大多數人認為盈利和收入增長趨勢是更有意義的業務指南。通過查看這張企業辦公物業信託的收益、收入和現金流的互動圖表,更深入地瞭解收益。
那股息呢?
在考察投資回報時,重要的是要考慮到股東總回報(TSR)和股價回報。雖然股價回報只反映股價的變動,但TSR包括股息的價值(假設股息再投資),以及任何折價集資或分拆所帶來的利益。公平地說,TSR為支付股息的股票提供了更完整的圖景。我們注意到,對於企業寫字樓物業信託,過去5年的TSR為-3.8%,優於上述股價回報率。而且,猜測股息支付在很大程度上解釋了這種差異是沒有好處的!
不同的視角
雖然看到企業寫字樓物業信託公司的股價全年下跌2.2%肯定令人失望,但這並不像市場下跌17%那麼糟糕。不幸的是,去年的表現可能預示著尚未解決的挑戰,因為它比過去五年0.8%的年化損失還要糟糕。雖然羅斯柴爾德男爵確實會告訴投資者“在街上有血的時候買入,即使血是你自己的”,但買家需要仔細檢查數據,才能確信業務本身是穩健的。雖然值得考慮市場狀況對股價可能產生的不同影響,但還有其他更重要的因素。例如,我們已經確定2企業寫字樓物業信託警示標誌這一點你應該知道.
企業寫字樓物業信託並不是內部人士買入的唯一股票。對於那些想要找到贏得投資這免費最近有內幕收購的不斷增長的公司名單可能就是合適的選擇。
請注意,本文引用的市場回報反映了目前在美國交易所交易的股票的市場加權平均回報.
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本文由Simply Wall St.撰寫,具有概括性.我們僅使用不偏不倚的方法提供基於歷史數據和分析師預測的評論,我們的文章並不打算作為財務建議.它不構成買賣任何股票的建議,也沒有考慮你的目標或你的財務狀況.我們的目標是為您帶來由基本面數據驅動的長期重點分析.請注意,我們的分析可能不會將最新的對價格敏感的公司公告或定性材料考慮在內.Simply Wall St.對上述任何一隻股票都沒有持倉.