Stock Analysis

Fluidra's (BME:FDR) investors will be pleased with their decent 82% return over the last five years

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BME:FDR
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It hasn't been the best quarter for Fluidra, S.A. (BME:FDR) shareholders, since the share price has fallen 22% in that time. But that doesn't change the fact that the returns over the last five years have been pleasing. Its return of 73% has certainly bested the market return! While the long term returns are impressive, we do have some sympathy for those who bought more recently, given the 54% drop, in the last year.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

However if you'd rather see where the opportunities and risks are within FDR's industry, you can check out our analysis on the ES Machinery industry.

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.

During the five years of share price growth, Fluidra moved from a loss to profitability. That's generally thought to be a genuine positive, so we would expect to see an increasing share price.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
BME:FDR Earnings Per Share Growth September 28th 2022

We know that Fluidra has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Fluidra stock, you should check out this FREE detailed report on its balance sheet.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Fluidra, it has a TSR of 82% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

While the broader market lost about 12% in the twelve months, Fluidra shareholders did even worse, losing 53% (even including dividends). However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 13% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Fluidra better, we need to consider many other factors. For example, we've discovered 3 warning signs for Fluidra (2 can't be ignored!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

Valuation is complex, but we're helping make it simple.

Find out whether Fluidra is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About BME:FDR

Fluidra

Fluidra, S.A., together with its subsidiaries, manufactures and markets accessories and machineries for swimming pools, irrigation, and water treatment and purification for private and public customers worldwide.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation3
Future Growth1
Past Performance2
Financial Health2
Dividends3

Read more about these checks in the individual report sections or in our analysis model.

Fair value second-rate dividend payer.