SBS Transit (SGX:S61) investors are sitting on a loss of 28% if they invested five years ago

Simply Wall St.11-04

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But even the best stock picker will only win with some selections. So ...

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But even the best stock picker will only win with some selections. So ...</p>\n\n<a href=\"https://finance.yahoo.com/news/sbs-transit-sgx-s61-investors-010059596.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"SBS","symbol_name":"Sabesp","start_time":0,"source_url":"https://finance.yahoo.com/news/sbs-transit-sgx-s61-investors-010059596.html","article_id":"2480635312","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/SYyLLE_TGxESmxaHD10fMQ--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/976387f9691d9e9c613091b5dddac717"],"rights":{"source":"yahoofinance_sg","url":"https://finance.yahoo.com/news/sbs-transit-sgx-s61-investors-010059596.html","rn_cache_url":null,"customStyle":"","selectors":"article, body","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2480635312","pubTimestamp":1730682059,"sourceInfo":{"source_id":"yahoofinance_sg","name":"Yahoo Finance"},"weMediaInfo":null,"summary":"In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But even the best stock picker will only win with some selections. So we wouldn't blame long term SBS Transit Ltd  shareholders for doubting their decision to hold, with the stock down 40% over a half decade.Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share  with the share price.The image below shows how EPS has tracked over time .","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"SBS":"Sabesp","BK4172":"水公用事业","S61.SI":"新捷运","BK6101":"陆运","BK6136":"旅客陆运","BK6519":"运输股"},"translate_title":"SBS Transit(SGX：S61)投资者如果五年前投资，将损失28%","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SBS":1,"S61.SI":0.9},"content_text":"In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market index fund. But even the best stock picker will only win with some selections. So we wouldn't blame long term SBS Transit Ltd (SGX:S61) shareholders for doubting their decision to hold, with the stock down 40% over a half decade. \n Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns. \n View our latest analysis for SBS Transit \n There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. \n During the five years over which the share price declined, SBS Transit's earnings per share (EPS) dropped by 5.2% each year. Readers should note that the share price has fallen faster than the EPS, at a rate of 10% per year, over the period. This implies that the market was previously too optimistic about the stock. The low P/E ratio of 11.25 further reflects this reticence. \n The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). \n\n\n\n  SGX:S61 Earnings Per Share Growth November 4th 2024\n \n\n This free interactive report on SBS Transit's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. \nWhat About Dividends?\n It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, SBS Transit's TSR for the last 5 years was -28%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. \nA Different Perspective\n SBS Transit shareholders gained a total return of 2.1% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 5% per year, over five years. It could well be that the business is stabilizing. 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 instance, we've identified   3 warning signs for SBS Transit (2 make us uncomfortable)  that you should be aware of. \n Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. \nPlease note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges.\nHave 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.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480635312"}