JD Sports Fashion (LON:JD.) Shareholders Have Enjoyed An Impressive 281% Share Price Gain

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of JD Sports Fashion plc (LON:JD.) stock is up an impressive 281% over the last five years. And in the last month, the share price has gained 7.8%. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report.

Check out our latest analysis for JD Sports Fashion

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, JD Sports Fashion achieved compound earnings per share (EPS) growth of 18% per year. This EPS growth is slower than the share price growth of 31% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

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

earnings-per-share-growth

This free interactive report on JD Sports Fashion's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between JD Sports Fashion's total shareholder return (TSR) and its share price return. 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. JD Sports Fashion's TSR of 287% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that JD Sports Fashion shareholders have received a total shareholder return of 82% over one year. That's better than the annualised return of 31% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand JD Sports Fashion better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for JD Sports Fashion you should be aware of.

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 GB exchanges.

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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