Franklin BSP Realty Trust (NYSE:FBRT) shareholders are up 11% this past week, but still in the red over the last year

It's nice to see the Franklin BSP Realty Trust, Inc. (NYSE:FBRT) share price up 11% in a week. It's not great that the stock is down over the last year. But on the bright side, its return of 17%, is better than the market, which is down 0.22568155367172.

Although the past week has been more reassuring for shareholders, they're still in the red over the last year, so let's see if the underlying business has been responsible for the decline.

View our latest analysis for Franklin BSP Realty Trust

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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 the last year Franklin BSP Realty Trust saw its earnings per share drop below zero. Buyers no doubt think it's a temporary situation, but those with a nose for quality have low tolerance for losses. However, there may be an opportunity for investors if the company can recover.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Franklin BSP Realty Trust's key metrics by checking this interactive graph of Franklin BSP Realty Trust's earnings, revenue and cash flow.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Franklin BSP Realty Trust's TSR for the last 1 year was -17%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

While they no doubt would have preferred make a profit, at least Franklin BSP Realty Trust shareholders didn't do too badly in the last year. Their loss of 17%, including dividends, actually beat the broader market, which lost around 23%. The falls have continued up until the last quarter, with the share price down 14% in that time. This doesn't look great to us, but it is possible that the market is over-reacting to prior disappointment. 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 Franklin BSP Realty Trust is showing 3 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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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.

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