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Investors Who Bought Urstadt Biddle Properties (NYSE:UBA) Shares A Year Ago Are Now Up 18%

Simply Wall St

We believe investing is smart because history shows that stock markets go higher in the long term. But if you choose that path, you're going to buy some stocks that fall short of the market. Unfortunately for shareholders, while the Urstadt Biddle Properties Inc. (NYSE:UBA) share price is up 18% in the last year, that falls short of the market return. Zooming out, the stock is actually down 3.4% in the last three years.

See our latest analysis for Urstadt Biddle Properties

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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).

During the last year Urstadt Biddle Properties grew its earnings per share (EPS) by 17%. We note that the earnings per share growth isn't far from the share price growth (of 18%). That suggests that the market sentiment around the company hasn't changed much over that time. It looks like the share price is responding to the EPS.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

NYSE:UBA Past and Future Earnings, December 17th 2019
NYSE:UBA Past and Future Earnings, December 17th 2019

We know that Urstadt Biddle Properties has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Urstadt Biddle Properties will grow revenue in the future.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). 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. In the case of Urstadt Biddle Properties, it has a TSR of 25% for the last year. 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

Urstadt Biddle Properties shareholders are up 25% for the year (even including dividends) . But that return falls short of the market. The silver lining is that the gain was actually better than the average annual return of 6.1% per year over five year. This suggests the company might be improving over time. If you would like to research Urstadt Biddle Properties in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Of course Urstadt Biddle Properties 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.