The five-year returns for flatexDEGIRO's (ETR:FTK) shareholders have been , yet its earnings growth was even better

Stock pickers are generally looking for stocks that will outperform the broader market. And in our experience, buying the right stocks can give your wealth a significant boost. For example, long term flatexDEGIRO AG (ETR:FTK) shareholders have enjoyed a 23% share price rise over the last half decade, well in excess of the market decline of around 6.9% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 1.2%.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

See our latest analysis for flatexDEGIRO

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Over half a decade, flatexDEGIRO managed to grow its earnings per share at 31% a year. This EPS growth is higher than the 4% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. This cautious sentiment is reflected in its (fairly low) P/E ratio of 9.57.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

We know that flatexDEGIRO has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at flatexDEGIRO's financial health with this free report on its balance sheet.

A Different Perspective

flatexDEGIRO shareholders gained a total return of 1.2% during the year. But that was short of the market average. On the bright side, the longer term returns (running at about 4% a year, over half a decade) look better. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. Is flatexDEGIRO cheap compared to other companies? These 3 valuation measures might help you decide.

Of course flatexDEGIRO may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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