TSR Decomposition : Top Industry Performers (“ Winners ”)
Decomposing the TSR of top performers ( top quartile ) reveals that , while market conditions strongly drove TSR in previous years , operational performance becomes even more important during unfavorable market conditions .
APPROXIMATED TOTAL SHAREHOLDER RETURN ( TSR ) DECOMPOSITION — TOP PERFORMERS ( TOP 25 %)
2019 – 2021
38 %
Two-thirds of the realized TSR was created through operational performance . Revenue is the main driver with almost 40 %.
8 %
17 %
63 % 3 %
24 %
10 %
Overall market effects had a strong impact on TSR during the observation period . High valuations ( multiples ) were driven by pandemic-related stimuli , fiscal conditions ( e . g ., interest rates ) and positive investment sentiment
100 %
2021 – 2022 |
35 % |
35 % |
24 % |
94 % |
-1 %
-3 %
Strong increase in the share of operating performance in realized TSR mainly driven by margin improvement
|
10 % |
100 % |
Revenue growth |
Margin improvement |
Investment ( CAPEX ) |
TSR from operational performance |
Leverage |
Multiple change |
Other [ 1 ] |
Realized TSR |
[ 1 ] Assumption Source : Public company information , goetzpartners analysis
10