Consolidated Communications Holdings' (NASDAQ:CNSL) Stock Price Has Reduced 73% In The Past Five Years

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. For example, after five long years the Consolidated Communications Holdings, Inc. (NASDAQ:CNSL) share price is a whole 73% lower. That's not a lot of fun for true believers. Furthermore, it's down 14% in about a quarter. That's not much fun for holders.

Check out our latest analysis for Consolidated Communications Holdings

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).

Consolidated Communications Holdings became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.

Revenue is actually up 15% over the time period. So it seems one might have to take closer look at the fundamentals to understand why the share price languishes. After all, there may be an opportunity.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that Consolidated Communications Holdings has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on Consolidated Communications Holdings

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Consolidated Communications Holdings' total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Consolidated Communications Holdings' TSR, which was a 63% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

We're pleased to report that Consolidated Communications Holdings shareholders have received a total shareholder return of 29% over one year. Notably the five-year annualised TSR loss of 10% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. To that end, you should learn about the 2 warning signs we've spotted with Consolidated Communications Holdings (including 1 which shouldn't be ignored) .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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