The main reason for long-term investing is to make money. But more than that, you probably want it to rise more than the market average. But DSV-A/S (CPH:DSV) has failed to achieve this second goal. The share price has increased by 84% in five years, which is below the market return. Last year was disappointing, with the share price falling by 5.3% during that time.

With this in mind, it is worth examining whether the company’s underlying fundamentals have been the driver of its long-term performance or whether there are some discrepancies.

Check out our latest analysis for DSV

While markets are a powerful pricing mechanism, share prices reflect not only underlying business performance but also investor sentiment. A flawed but useful way to assess how sentiment toward a company has changed is to compare earnings per share (EPS) to the share price.

Over half a decade, DSV managed to grow its earnings per share by 17% per year. This EPS growth is higher than the average annual increase in the share price of 13%. Therefore, the market seems to have become relatively bearish on the company.

Below you can see how EPS has changed over time (click on the image to see the exact values).

It might be worth taking a look at our free DSV earnings, revenue and cash flow report.

What about dividends?

It’s important to consider both the total shareholder return and the share price return for any stock. The TSR includes the value of any spin-offs or discounted capital raisings, as well as any dividends, based on the assumption that the dividends are reinvested. One could argue that the TSR gives a more comprehensive picture of the return generated by a stock. In fact, DSV’s TSR over the last 5 years was 88%, which exceeds the share price return mentioned earlier. This is largely due to the dividend payments!

A different perspective

DSV shareholders have lost 4.7% for the year (even including dividends), but the market itself is up 28%. However, remember that even the best stocks sometimes underperform the market over a twelve-month period. On the plus side, long-term shareholders have made money, with a gain of 13% per year over half a decade. It could be that the recent sell-off represents an opportunity, so it might be worth checking the fundamentals for signs of a long-term growth trend. Before forming an opinion on DSV, consider these 3 valuation metrics.

For those who like to find Successful investments The free A list of undervalued companies with recent insider buying might be just the thing.

Please note that the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Danish exchanges.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.