Announcing: Phoenix Mills (NSE:PHOENIXLTD) Stock Increased An Energizing 198% In The Last Five Years

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. For example, the The Phoenix Mills Limited (NSE:PHOENIXLTD) share price has soared 198% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 17% gain in the last three months. But this could be related to the strong market, which is up 17% in the last three months.

Check out our latest analysis for Phoenix Mills

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 five years of share price growth, Phoenix Mills achieved compound earnings per share (EPS) growth of 1.4% per year. This EPS growth is slower than the share price growth of 24% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 374.44.

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

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Phoenix Mills' total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Phoenix Mills' TSR of 204% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

Phoenix Mills shareholders are down 9.5% for the year, but the market itself is up 30%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 25% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Phoenix Mills better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Phoenix Mills you should be aware of, and 1 of them can't be ignored.

We will like Phoenix Mills better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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