The total return for F-Secure Oyj (HEL:FSC1V) investors has risen faster than earnings growth over the last three years

By
Simply Wall St
Published
January 25, 2022
HLSE:FSC1V
Source: Shutterstock

F-Secure Oyj (HEL:FSC1V) shareholders might be concerned after seeing the share price drop 19% in the last quarter. But don't let that distract from the very nice return generated over three years. After all, the share price is up a market-beating 56% in that time.

Although F-Secure Oyj has shed €74m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

Check out our latest analysis for F-Secure Oyj

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 three years of share price growth, F-Secure Oyj achieved compound earnings per share growth of 43% per year. The average annual share price increase of 16% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
HLSE:FSC1V Earnings Per Share Growth January 25th 2022

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of F-Secure Oyj's earnings, revenue and cash flow.

A Different Perspective

F-Secure Oyj shareholders gained a total return of 6.3% during the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. It is possible that returns will improve along with the business fundamentals. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should be aware of the 1 warning sign we've spotted with F-Secure Oyj .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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