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Update: St. Joe (NYSE:JOE) Stock Gained 12% In The Last Five Years

The St. Joe Company (NYSE:JOE) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But at least the stock is up over the last five years. In that time, it is up 12%, which isn't bad, but is below the market return of 44%.

See our latest analysis for St. Joe

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 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.

During five years of share price growth, St. Joe achieved compound earnings per share (EPS) growth of 84% per year. The EPS growth is more impressive than the yearly share price gain of 2.2% over the same period. Therefore, it seems the market has become relatively pessimistic about the company.

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

NYSE:JOE Past and Future Earnings May 15th 2020
NYSE:JOE Past and Future Earnings May 15th 2020

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of St. Joe's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that St. Joe shareholders have received a total shareholder return of 3.6% over one year. That gain is better than the annual TSR over five years, which is 2.2%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 4 warning signs for St. Joe (1 is a bit unpleasant) that you should be aware of.

St. Joe is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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