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John B. Sanfilippo & Son (NASDAQ:JBSS) Has Gifted Shareholders With A Fantastic 109% Total Return On Their Investment

Simply Wall St
·3 min read

John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS) shareholders might be concerned after seeing the share price drop 12% in the last month. But the silver lining is the stock is up over five years. However we are not very impressed because the share price is only up 56%, less than the market return of 95%. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 16% decline over the last twelve months.

Check out our latest analysis for John B. Sanfilippo & Son

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...' 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.

Over half a decade, John B. Sanfilippo & Son managed to grow its earnings per share at 12% a year. The EPS growth is more impressive than the yearly share price gain of 9.3% over the same period. So it seems the market isn't so enthusiastic about the stock these days.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

We know that John B. Sanfilippo & Son has improved its bottom line lately, but is it going to grow revenue? Check if analysts think John B. Sanfilippo & Son will grow revenue in the future.

What About Dividends?

As well as measuring the share price return, investors should also consider the 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. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, John B. Sanfilippo & Son's TSR for the last 5 years was 109%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

John B. Sanfilippo & Son shareholders are down 11% for the year (even including dividends), but the market itself is up 25%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 16%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand John B. Sanfilippo & Son better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for John B. Sanfilippo & Son (of which 1 makes us a bit uncomfortable!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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. 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@simplywallst.com.