Yahoo Finance Further weakness as International Distributions Services (LON:IDS) drops 6.6% this week, taking five-year losses to 7.7%
International Distributions Services plc (LON:IDS) shareholders should be happy to see the share price up 13% in the last quarter. But that doesn't change the fact that the returns over the last five years have been less than pleasing. You would have done a lot better buying an index fund, since the stock has dropped 29% in that half decade.
Since International Distributions Services has shed UK£171m from its value in the past 7 days, let's see if the longer term decline has been driven by the business' economics.
View our latest analysis for International Distributions Services
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. 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.
In the last half decade International Distributions Services saw its share price fall as its EPS declined below zero. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into International Distributions Services' key metrics by checking this interactive graph of International Distributions Services's earnings, revenue and cash flow.
What About The Total Shareholder Return (TSR)?
We've already covered International Distributions Services' share price action, but we should also mention its total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for International Distributions Services shareholders, and that cash payout explains why its total shareholder loss of 7.7%, over the last 5 years, isn't as bad as the share price return.
A Different Perspective
We're pleased to report that International Distributions Services shareholders have received a total shareholder return of 21% over one year. There's no doubt those recent returns are much better than the TSR loss of 1.5% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
But note: International Distributions Services may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British 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.
