Those who invested in Meridian Bioscience (NASDAQ:VIVO) three years ago are up 28%

Buying a low-cost index fund will get you the average market return. But in any diversified portfolio of stocks, you'll see some that fall short of the average. That's what has happened with the Meridian Bioscience, Inc. (NASDAQ:VIVO) share price. It's up 26% over three years, but that is below the market return. On the other hand, the more recent gain of 24% over a year is certainly pleasing.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Meridian Bioscience

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

Meridian Bioscience was able to grow its EPS at 42% per year over three years, sending the share price higher. The average annual share price increase of 8% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time. This cautious sentiment is reflected in its (fairly low) P/E ratio of 11.87.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth

We know that Meridian Bioscience has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Meridian Bioscience's financial health with this free report on its balance sheet.

A Different Perspective

Meridian Bioscience provided a TSR of 24% over the last twelve months. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 1.9% over half a decade This suggests the company might be improving over time. It's always interesting to track share price performance over the longer term. But to understand Meridian Bioscience better, we need to consider many other factors. Even so, be aware that Meridian Bioscience is showing 1 warning sign in our investment analysis , you should know about...

We will like Meridian Bioscience 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.

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.

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