The Pro-Dex (NASDAQ:PDEX) Share Price Is Up 732% And Shareholders Are Delighted

The last three months have been tough on Pro-Dex, Inc. (NASDAQ:PDEX) shareholders, who have seen the share price decline a rather worrying 32%. But that does not change the realty that the stock's performance has been terrific, over five years. In that time, the share price has soared some 732% higher! So it might be that some shareholders are taking profits after good performance. The most important thing for savvy investors to consider is whether the underlying business can justify the share price gain.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for Pro-Dex

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During five years of share price growth, Pro-Dex achieved compound earnings per share (EPS) growth of 72% per year. This EPS growth is higher than the 53% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock.

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

It is of course excellent to see how Pro-Dex has grown profits over the years, but the future is more important for shareholders. This free interactive report on Pro-Dex's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Pro-Dex shareholders have received a total shareholder return of 47% over one year. However, that falls short of the 53% TSR per annum it has made for shareholders, each year, over five years. It's always interesting to track share price performance over the longer term. But to understand Pro-Dex better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Pro-Dex (of which 1 is concerning!) you should know about.

We will like Pro-Dex 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 US 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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