Reflecting on Phoenix Tours International's (TPE:5706) Share Price Returns Over The Last Year

Phoenix Tours International, Inc. (TPE:5706) shareholders should be happy to see the share price up 10% in the last month. But in truth the last year hasn't been good for the share price. In fact, the price has declined 10% in a year, falling short of the returns you could get by investing in an index fund.

Check out our latest analysis for Phoenix Tours International

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Unhappily, Phoenix Tours International had to report a 81% decline in EPS over the last year. The share price fall of 10% isn't as bad as the reduction in earnings per share. It may have been that the weak EPS was not as bad as some had feared. With a P/E ratio of 54.97, it's fair to say the market sees an EPS rebound on the cards.

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

Dive deeper into Phoenix Tours International's key metrics by checking this interactive graph of Phoenix Tours International's earnings, revenue and cash flow.

A Different Perspective

Investors in Phoenix Tours International had a tough year, with a total loss of 9.5% (including dividends), against a market gain of about 24%. 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. Longer term investors wouldn't be so upset, since they would have made 5%, 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 Phoenix Tours International better, we need to consider many other factors. Even so, be aware that Phoenix Tours International is showing 5 warning signs in our investment analysis , and 3 of those don't sit too well with us...

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