Those who invested in Accent Group (ASX:AX1) five years ago are up 170%

The maximum amount you can lose on any stock (assuming no leverage is used) is 100% of your capital. But if you choose a really prosperous company, make over 100. for example, Accent Group Limited (ASX:AX1) shares have soared 109% over the past five years. Most people will be very happy with it. We’re also happy to see that the stock has risen 45% in the last quarter.

Let’s look at the underlying fundamentals over the long term and see if they align with shareholder interests.

Check out Accent Group’s latest analysis.

Markets are powerful pricing mechanisms, but stock prices reflect investor sentiment, not just underlying performance. By comparing earnings per share (EPS) and stock price over time, you can get a sense of how investor attitudes toward companies have changed over time.

Accent Group has grown earnings per share at an annual rate of 0.6% for over five years. This EPS growth is slower than the 16% annual share price growth over the same period. So we can infer that the market has a higher reputation for this business than he did five years ago. And given its track record of growth, it’s not surprising.

The company’s earnings per share over time are shown in the image below (click to see exact numbers).

Earnings per share growth

Earnings per share growth

We take it positively that insiders have made significant purchases in the last year. That being said, most people consider profit and revenue growth trends to be a more meaningful guide for their business.this freedom If you want to explore the stock further, Accent Group’s interactive reports on earnings, earnings, and cash flow are a great place to start.


When looking at return on investment, it’s important to consider the following differences: Total shareholder return (TSR) and stock price returnTSR is an earnings calculation that accounts for the value of cash dividends (assuming dividends received are reinvested) and the calculated value of discounted capital raisings and spin-offs. Arguably, the TSR is a more comprehensive representation of the returns generated by equities. Accent Group’s TSR over the last five years is 170%, better than the stock return above. This is primarily a result of dividend payments!

another point of view

Accent Group shareholders lost 11% (including dividends) last year while the market as a whole rose about 1.2%. But be aware that even the best stocks can underperform the market for 12 months. Long-term investors shouldn’t be too upset, as they’ve made 22% returns each year over five years. If the fundamental data continue to point to long-term sustainable growth, the current sell-off could be an opportunity worth considering. While it’s worth considering the various effects market conditions have on stock prices, there are other factors that are even more important.For example we discovered Two warning signs for accent groups Things to know before investing here.

Accent Group isn’t the only insider buying shares.Let’s take a look at this freedom List of companies growing with insider buying.

Please note that the market returns quoted in this article reflect market-weighted average returns for stocks currently traded on the AU exchange.

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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …

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