The 3.7% return this week takes Fortis Healthcare's (NSE:FORTIS) shareholders three-year gains to 81%

Published
June 26, 2022
NSEI:FORTIS
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Fortis Healthcare Limited (NSE:FORTIS) shareholders might be concerned after seeing the share price drop 13% in the last quarter. But don't let that distract from the very nice return generated over three years. In the last three years the share price is up, 81%: better than the market.

Since the stock has added ₹6.7b to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Fortis Healthcare

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During three years of share price growth, Fortis Healthcare moved from a loss to profitability. So we would expect a higher share price over the period.

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

earnings-per-share-growth
NSEI:FORTIS Earnings Per Share Growth June 26th 2022

We know that Fortis Healthcare has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Fortis Healthcare's financial health with this free report on its balance sheet.

A Different Perspective

Fortis Healthcare shareholders are down 2.1% for the year, but the market itself is up 0.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 8%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Fortis Healthcare better, we need to consider many other factors. Take risks, for example - Fortis Healthcare has 1 warning sign we think you should be aware of.

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 IN exchanges.

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