It hasn’t been the best quarter for 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS) shareholders, since the share price has fallen 12% in that time. On the other hand the returns over the last half decade have not been bad. The share price is up 70%, which is better than the market return of 65%.
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. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over half a decade, 1-800-FLOWERS.COM managed to grow its earnings per share at 20% a year. This EPS growth is higher than the 11% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company.
The company’s earnings per share (over time) are depicted in the image below.
It might be well worthwhile taking a look at our free report on 1-800-FLOWERS.COM’s earnings, revenue and cash flow.
A Different Perspective
1-800-FLOWERS.COM provided a TSR of 7.6% over the last twelve months. But that return falls short of the market. It’s probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 11% over five years. It’s quite possible the business continues to execute with prowess, even as the share price gains are slowing. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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