M
arket momentum can be fleeting, but Sirius Real Estate Limited's (LON:SRE) 12% quarterly surge is a welcome respite from its lackluster three-year performance. The share price has indeed declined by 31% over this period, underperforming the returns of a passive index fund. However, recent gains may signal a turning point.

    A closer look at historical fundamentals reveals some intriguing trends. Despite a compound EPS decline of 17% per year, the market seems to retain optimism about long-term earnings stability. Insider buying in the last quarter is also a positive sign. Yet, it's essential to examine growth trends and consider the total shareholder return (TSR), which incorporates dividends and spin-offs.

    For Sirius Real Estate, the TSR over three years was -19%, largely due to dividend payments. Shareholders have seen a 0.6% decline this year, despite the market's 14% gain. However, long-term investors have fared better, with a 10% annual return over five years. The recent sell-off may present an opportunity to reassess the company's fundamentals and growth prospects.

    While market conditions can impact share prices, it's crucial to consider other factors, such as risks. We've identified two warning signs for Sirius Real Estate (one of which is concerning), highlighting the importance of a thorough analysis before making any investment decisions.