Advertisement
U.S. markets open in 3 hours 18 minutes
  • S&P Futures

    5,304.25
    -4.00 (-0.08%)
     
  • Dow Futures

    40,141.00
    -3.00 (-0.01%)
     
  • Nasdaq Futures

    18,482.00
    -21.75 (-0.12%)
     
  • Russell 2000 Futures

    2,135.50
    -2.90 (-0.14%)
     
  • Crude Oil

    81.94
    +0.59 (+0.73%)
     
  • Gold

    2,218.60
    +5.90 (+0.27%)
     
  • Silver

    24.57
    -0.18 (-0.74%)
     
  • EUR/USD

    1.0783
    -0.0047 (-0.43%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    13.00
    +0.22 (+1.72%)
     
  • GBP/USD

    1.2605
    -0.0033 (-0.26%)
     
  • USD/JPY

    151.4440
    +0.1980 (+0.13%)
     
  • Bitcoin USD

    70,626.32
    +606.93 (+0.87%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,972.51
    +40.53 (+0.51%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Those who invested in Enova International (NYSE:ENVA) five years ago are up 170%

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on a lighter note, a good company can see its share price rise well over 100%. For instance, the price of Enova International, Inc. (NYSE:ENVA) stock is up an impressive 170% over the last five years. It's also up 25% in about a month. We note that Enova International reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.

Check out our latest analysis for Enova International

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. 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, Enova International managed to grow its earnings per share at 48% a year. The EPS growth is more impressive than the yearly share price gain of 22% over the same period. Therefore, it seems the market has become relatively pessimistic about the company. The reasonably low P/E ratio of 5.95 also suggests market apprehension.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

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

Dive deeper into Enova International's key metrics by checking this interactive graph of Enova International's earnings, revenue and cash flow.

A Different Perspective

Although it hurts that Enova International returned a loss of 2.1% in the last twelve months, the broader market was actually worse, returning a loss of 20%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 22% for each year. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. It's always interesting to track share price performance over the longer term. But to understand Enova International better, we need to consider many other factors. Take risks, for example - Enova International has 2 warning signs we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

Advertisement