The 40% return delivered to Singapore Post's (SGX:S08) shareholders actually lagged YoY earnings growth

Yahoo

08-05-2025

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. For example, the Singapore Post Limited (SGX:S08) share price is up 38% in the last 1 year, clearly besting the market return of around 15% (not including dividends). So that should have shareholders smiling. Zooming out, the stock is actually down 13% in the last three years.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
Our free stock report includes 2 warning signs investors should be aware of before investing in Singapore Post. Read for free now.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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).
Singapore Post was able to grow EPS by 123% in the last twelve months. It's fair to say that the share price gain of 38% did not keep pace with the EPS growth. So it seems like the market has cooled on Singapore Post, despite the growth. Interesting.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
SGX:S08 Earnings Per Share Growth May 8th 2025
We know that Singapore Post has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.
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. As it happens, Singapore Post's TSR for the last 1 year was 40%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
We're pleased to report that Singapore Post shareholders have received a total shareholder return of 40% over one year. That's including the dividend. Notably the five-year annualised TSR loss of 1.8% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Singapore Post (at least 1 which can't be ignored) , and understanding them should be part of your investment process.