Shareholders Of National Storage Affiliates Trust (NYSE:NSA) Must Be Happy With Their 174% Total Return – Simply Wall St

It hasnt been the best quarter for National Storage Affiliates Trust (NYSE:NSA) shareholders, since the share price has fallen 19% in that time. But in stark contrast, the returns over the last half decade have impressed. We think most investors would be happy with the 120% return, over that period. So while its never fun to see a share price fall, its important to look at a longer time horizon. Of course, that doesnt necessarily mean its cheap now.

Check out our latest analysis for National Storage Affiliates Trust

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

During five years of share price growth, National Storage Affiliates Trust actually saw its EPS drop 57% per year. The impact of extraordinary items on earnings, in the last year, partially explain the diversion.

This means its unlikely the market is judging the company based on earnings growth. Because earnings per share dont seem to match up with the share price, well take a look at other metrics instead.

We note that the dividend is higher than it was previously always nice to see. Maybe dividend investors have helped support the share price. Wed posit that the revenue growth over the last five years, of 27% per year, would encourage people to invest.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Its good to see that there was some significant insider buying in the last three months. Thats a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling National Storage Affiliates Trust stock, you should check out this free report showing analyst profit forecasts.

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of National Storage Affiliates Trust, it has a TSR of 174% for the last 5 years. That exceeds its share price return that we previously mentioned. And theres no prize for guessing that the dividend payments largely explain the divergence!

Its nice to see that National Storage Affiliates Trust shareholders have received a total shareholder return of 3.3% over the last year. Thats including the dividend. However, that falls short of the 22% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that National Storage Affiliates Trust is showing 4 warning signs in our investment analysis , and 1 of those is a bit unpleasant

National Storage Affiliates Trust is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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.

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Shareholders Of National Storage Affiliates Trust (NYSE:NSA) Must Be Happy With Their 174% Total Return - Simply Wall St