Yahoo Finance 1-800-FLOWERS.COM's (NASDAQ:FLWS) five-year earnings growth trails the solid shareholder returns
1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) shareholders have seen the share price descend 27% over the month. But that doesn't change the fact that the returns over the last five years have been very strong. In fact, the share price is 110% higher today. Generally speaking the long term returns will give you a better idea of business quality than short periods can. Of course, that doesn't necessarily mean it's cheap now.
The past week has proven to be lucrative for 1-800-FLOWERS.COM investors, so let's see if fundamentals drove the company's five-year performance.
View our latest analysis for 1-800-FLOWERS.COM
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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, 1-800-FLOWERS.COM achieved compound earnings per share (EPS) growth of 35% per year. This EPS growth is higher than the 16% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that 1-800-FLOWERS.COM has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on 1-800-FLOWERS.COM's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While the broader market gained around 21% in the last year, 1-800-FLOWERS.COM shareholders lost 13%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 16% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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 risks, for instance. Every company has them, and we've spotted 2 warning signs for 1-800-FLOWERS.COM you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.
