ICU Medical's (NASDAQ:ICUI) investors will be pleased with their favorable 45% return over the last five years
It might be of some concern to shareholders to see the ICU Medical, Inc. (NASDAQ:ICUI) share price down 11% in the last month. But at least the stock is up over the last five years. Unfortunately its return of 45% is below the market return of 100%.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
View our latest analysis for ICU Medical
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).
Over half a decade, ICU Medical managed to grow its earnings per share at 2.0% a year. This EPS growth is lower than the 8% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. This optimism is visible in its fairly high P/E ratio of 50.66.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It is of course excellent to see how ICU Medical has grown profits over the years, but the future is more important for shareholders. You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We're pleased to report that ICU Medical shareholders have received a total shareholder return of 3.6% over one year. However, the TSR over five years, coming in at 8% per year, is even more impressive. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for ICU Medical that you should be aware of before investing here.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.
