Fortis Healthcare's (NSE:FORTIS) Stock Price Has Reduced 12% In The Past Five Years

Fortis Healthcare Limited (NSE:FORTIS) shareholders should be happy to see the share price up 16% in the last month. But if you look at the last five years the returns have not been good. After all, the share price is down 12% in that time, significantly under-performing the market.

View our latest analysis for Fortis Healthcare

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

In the last half decade Fortis Healthcare saw its share price fall as its EPS declined below zero. At present it's hard to make valid comparisons between EPS and the share price. However, we can say we'd expect to see a falling share price in this scenario.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

It is of course excellent to see how Fortis Healthcare has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling Fortis Healthcare stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Fortis Healthcare shareholders gained a total return of 4.5% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 2% endured over half a decade. It could well be that the business is stabilizing. You could get a better understanding of Fortis Healthcare's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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This article by Simply Wall St is general in nature. 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.
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