Investors one-year returns in Interface (NASDAQ:TILE) have not grown faster than the company's underlying earnings growth

The Interface, Inc. (NASDAQ:TILE) share price has had a bad week, falling 10%. But that doesn't change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 108% in that time. So some might not be surprised to see the price retrace some. More important, going forward, is how the business itself is going.

Since the long term performance has been good but there's been a recent pullback of 10%, let's check if the fundamentals match the share price.

Check out our latest analysis for Interface

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. 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 the last year Interface saw its earnings per share (EPS) increase strongly. This remarkable growth rate may not be sustainable, but it is still impressive. So we're unsurprised to see the share price gaining ground. To us, inflection points like this are the best time to take a close look at a stock.

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

We know that Interface has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Interface will grow revenue in the future.

A Different Perspective

We're pleased to report that Interface shareholders have received a total shareholder return of 108% over one year. And that does include the dividend. That gain is better than the annual TSR over five years, which is 2%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Interface better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Interface you should be aware of.

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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 American 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.