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The five-year decline in earnings might be taking its toll on TPI Composites (NASDAQ:TPIC) shareholders as stock falls 12% over the past week

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TPI Composites, Inc. (NASDAQ:TPIC) shareholders might be concerned after seeing the share price drop 16% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 82% is below the market return of 127%.

Although TPI Composites has shed US$179m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for TPI Composites

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).

During the last half decade, TPI Composites became profitable. That would generally be considered a positive, so we'd expect the share price to be up.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
earnings-per-share-growth

We know that TPI Composites 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

TPI Composites provided a TSR of 25% over the last twelve months. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 13% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. It's always interesting to track share price performance over the longer term. But to understand TPI Composites better, we need to consider many other factors. Even so, be aware that TPI Composites is showing 5 warning signs in our investment analysis , you should know about...

But note: TPI Composites 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.