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Even though SITE Centers (NYSE:SITC) has lost US$220m market cap in last 7 days, shareholders are still up 26% over 5 years

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For many, the main point of investing is to generate higher returns than the overall market. But in any portfolio, there will be mixed results between individual stocks. So we wouldn't blame long term SITE Centers Corp. (NYSE:SITC) shareholders for doubting their decision to hold, with the stock down 20% over a half decade. Unfortunately the share price momentum is still quite negative, with prices down 11% in thirty days. But this could be related to poor market conditions -- stocks are down 13% in the same time.

With the stock having lost 6.6% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for SITE Centers

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

During five years of share price growth, SITE Centers moved from a loss to profitability. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.

It could be that the revenue decline of 16% per year is viewed as evidence that SITE Centers is shrinking. This has probably encouraged some shareholders to sell down the stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
earnings-and-revenue-growth

We know that SITE Centers has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for SITE Centers in this interactive graph of future profit estimates.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, SITE Centers' TSR for the last 5 years was 26%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

It's nice to see that SITE Centers shareholders have received a total shareholder return of 4.7% over the last year. That's including the dividend. However, the TSR over five years, coming in at 5% per year, is even more impressive. It's always interesting to track share price performance over the longer term. But to understand SITE Centers better, we need to consider many other factors. Even so, be aware that SITE Centers is showing 3 warning signs in our investment analysis , and 1 of those can't be ignored...

Of course SITE Centers may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.