Stock Analysis

Those who invested in Focus Financial Partners (NASDAQ:FOCS) three years ago are up 222%

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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the Focus Financial Partners Inc. (NASDAQ:FOCS) share price is 222% higher than it was three years ago. That sort of return is as solid as granite. Also pleasing for shareholders was the 30% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.

So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns.

View our latest analysis for Focus Financial Partners

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...' 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).

Focus Financial Partners became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

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

NasdaqGS:FOCS Earnings Per Share Growth March 14th 2023

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

A Different Perspective

We're pleased to report that Focus Financial Partners rewarded shareholders with a total shareholder return of 17% over the last year. But the three year TSR of 48% per year is even better. It's always interesting to track share price performance over the longer term. But to understand Focus Financial Partners better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Focus Financial Partners you should be aware of, and 2 of them are significant.

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 US exchanges.

What are the risks and opportunities for Focus Financial Partners?

Focus Financial Partners Inc. provides wealth management services to primarily ultra-high and high net worth individuals, families, and business entities.

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  • Revenue is forecast to grow 11.73% per year

  • Earnings grew by 781.5% over the past year


  • Earnings are forecast to decline by an average of 71.9% per year for the next 3 years

  • Interest payments are not well covered by earnings

  • Large one-off items impacting financial results

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Focus Financial Partners

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