- Oops!Something went wrong.Please try again later.
By buying an index fund, you can roughly match the market return with ease. But if you choose individual stocks with prowess, you can make superior returns. For example, the International Money Express, Inc. (NASDAQ:IMXI) share price is up 67% in the last three years, clearly besting the market return of around 51% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 6.7%.
Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
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.
A Different Perspective
Over the last year International Money Express shareholders have received a TSR of 6.7%. It's always nice to make money but this return falls short of the market return which was about 37% for the year. But the (superior) three-year TSR of 19% per year is some consolation. Even the best companies don't see strong share price performance every year. It's always interesting to track share price performance over the longer term. But to understand International Money Express better, we need to consider many other factors. Take risks, for example - International Money Express has 1 warning sign we think you should be aware of.
But note: International Money Express may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.