Orbit Exports' (NSE:ORBTEXP) 35% YoY earnings expansion surpassed the shareholder returns over the past three years

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. To wit, the Orbit Exports Limited (NSE:ORBTEXP) share price has flown 130% in the last three years. Most would be happy with that. It's also good to see the share price up 13% over the last quarter. But this could be related to the strong market, which is up 12% in the last three months.

Since it's been a strong week for Orbit Exports shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Orbit Exports

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.

Orbit Exports was able to grow its EPS at 145% per year over three years, sending the share price higher. The average annual share price increase of 32% is actually lower than the EPS growth. Therefore, it seems the market has moderated its expectations for growth, somewhat.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

This free interactive report on Orbit Exports' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Orbit Exports provided a TSR of 4.9% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 14% per year for five years. It may well be that this is a business worth popping on the watching, given the continuing positive reception, over time, from the market. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Orbit Exports that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com