Yahoo Finance The Frasers Group (LON:FRAS) Share Price Is Up 80% And Shareholders Are Holding On
If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Frasers Group plc (LON:FRAS) share price is 80% higher than it was a year ago, much better than the market return of around 6.6% (not including dividends) in the same period. So that should have shareholders smiling. Looking back further, the stock price is 68% higher than it was three years ago.
See our latest analysis for Frasers Group
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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 the last year Frasers Group grew its earnings per share (EPS) by 232%. This EPS growth is significantly higher than the 80% increase in the share price. So it seems like the market has cooled on Frasers Group, despite the growth. Interesting.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Frasers Group has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.
A Different Perspective
We're pleased to report that Frasers Group shareholders have received a total shareholder return of 80% over one year. There's no doubt those recent returns are much better than the TSR loss of 6.3% per year over five years. 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. It's always interesting to track share price performance over the longer term. But to understand Frasers Group better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Frasers Group (including 1 which is is potentially serious) .
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
