Greencore Group's (LON:GNC) one-year earnings growth trails the solid shareholder returns

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. Take, for example Greencore Group plc (LON:GNC). Its share price is already up an impressive 118% in the last twelve months. It's also good to see the share price up 58% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. However, the stock hasn't done so well in the longer term, with the stock only up 15% in three years.

Since the stock has added UK£135m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for Greencore Group

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.

Greencore Group was able to grow EPS by 18% in the last twelve months. The share price gain of 118% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

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

It is of course excellent to see how Greencore Group has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Greencore Group has rewarded shareholders with a total shareholder return of 118% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. Before spending more time on Greencore Group it might be wise to click here to see if insiders have been buying or selling shares.

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 British 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.