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 Singapore Airlines Limited (SGX:C6L), which is up 39%, over three years, soundly beating the market decline of 7.1% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 4.3% in the last year, including dividends.
So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns.
There is no denying that markets are sometimes efficient, but prices do not always reflect 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.
Singapore Airlines became profitable within the last three years. So we would expect a higher share price over the period.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
SGX:C6L Earnings Per Share Growth June 4th 2024
It is of course excellent to see how Singapore Airlines has grown profits over the years, but the future is more important for shareholders. This free interactive report on Singapore Airlines' balance sheet strength is a great place to start, if you want to investigate the stock further.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. As it happens, Singapore Airlines' TSR for the last 3 years was 49%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Singapore Airlines shareholders are up 4.3% for the year (even including dividends). Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it's actually better than the average return of 3% over half a decade This suggests the company might be improving over time. 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. For example, we've discovered 2 warning signs for Singapore Airlines (1 can't be ignored!) that you should be aware of before investing here.
But note: Singapore Airlines may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean 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.
從股市中獲益的一個簡單方法就是購買指數基金。但是我們中的許多人敢於夢想獲得更大的回報,並自己建立投資組合。看看新加坡航空有限公司(SGX: C6L),該公司在三年內上漲了39%,大大超過了市場7.1%(不包括股息)的跌幅。但是,最近的回報並不那麼令人印象深刻,該股去年的回報率僅爲4.3%,包括股息。
因此,讓我們評估一下過去3年的基本面,看看它們是否與股東回報同步發展。
不可否認的是,市場有時效率很高,但價格並不總是反映潛在的業務表現。通過比較一段時間內的每股收益(EPS)和股價的變化,我們可以感受到投資者對公司的態度是如何隨着時間的推移而變化的。
新加坡航空在過去三年中實現了盈利。因此,我們預計在此期間股價將上漲。
您可以在下圖中看到 EPS 隨時間推移的變化(點擊圖表查看確切值)。
新加坡證券交易所:C6L 每股收益增長 2024 年 6 月 4 日
看到新加坡航空多年來如何增加利潤當然是件好事,但未來對股東來說更爲重要。如果你想進一步調查新加坡航空的股票,這份關於新加坡航空資產負債表實力的免費互動報告是一個很好的起點。
分紅呢?
在考慮投資回報時,重要的是要考慮股東總回報(TSR)和股價回報率之間的差異。股東總回報率是一種回報計算方法,它考慮了現金分紅的價值(假設收到的任何股息都經過再投資)以及任何貼現資本籌集和分拆的計算價值。可以說,股東總回報率更全面地描述了股票產生的回報。碰巧的是,新加坡航空過去3年的股東總回報率爲49%,超過了前面提到的股價回報率。而且,猜測股息支付在很大程度上解釋了這種分歧是沒有好處的!
不同的視角
新加坡航空的股東今年上漲了4.3%(甚至包括股息)。不幸的是,這沒有達到市場回報率。好的一面是,這仍然是一個收益,而且實際上好於五年來3%的平均回報率。這表明該公司可能會隨着時間的推移而有所改善。我發現將長期股價視爲業務績效的代表非常有趣。但是,要真正獲得見解,我們還需要考慮其他信息。例如,我們發現了新加坡航空的 2 個警告標誌(1 個不容忽視!)在這裏投資之前,您應該注意這一點。
但請注意:新加坡航空可能不是最值得購買的股票。因此,來看看這份過去盈利增長(以及進一步增長預測)的有趣公司的免費清單。
請注意,本文引用的市場回報反映了目前在新加坡交易所交易的股票的市場加權平均回報。
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。