SiteOne Landscape Supply (NYSE:SITE) jumps 5.0% this week, though earnings growth is still tracking behind five-year shareholder returns
It hasn't been the best quarter for SiteOne Landscape Supply, Inc. (NYSE:SITE) shareholders, since the share price has fallen 15% in that time. But that doesn't change the fact that the returns over the last five years have been very strong. It's fair to say most would be happy with 142% the gain in that time. Generally speaking the long term returns will give you a better idea of business quality than short periods can. Of course, that doesn't necessarily mean it's cheap now.
The past week has proven to be lucrative for SiteOne Landscape Supply investors, so let's see if fundamentals drove the company's five-year performance.
View our latest analysis for SiteOne Landscape Supply
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
Over half a decade, SiteOne Landscape Supply managed to grow its earnings per share at 14% a year. This EPS growth is slower than the share price growth of 19% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
This free interactive report on SiteOne Landscape Supply's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that SiteOne Landscape Supply shareholders have received a total shareholder return of 17% over the last year. However, the TSR over five years, coming in at 19% per year, is even more impressive. It's always interesting to track share price performance over the longer term. But to understand SiteOne Landscape Supply better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with SiteOne Landscape Supply .
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 American exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
