PAM Transportation Services (NASDAQ:PTSI) Five-Year Total Shareholder Returns Exceed Underlying Earnings Growth
We believe that all investors should try to buy and hold high quality multi-year winners. And we’ve seen some really amazing gains over the years. Namely, the PAM Transportation Services, Inc. (NASDAQ: PTSI) the stock price has soared 648% in five years. It just shows the value creation some companies can achieve. Shareholders also appreciated the 32% gain over the past three months. The company released its financial results recently; you can keep up to date with the latest figures by reading our corporate report. We love happy stories like this. The company should be really proud of this performance!
In light of the stock’s 7.2% drop over the past week, we want to look at the longer-term story and see if fundamentals have been driving the company’s positive five-year performance. .
Check out our latest analysis for PAM Transportation Services
It is undeniable that markets are sometimes efficient, but prices do not always reflect the underlying performance of companies. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of how investors’ attitudes toward a company change over time.
In half a decade, PAM Transportation Services has managed to increase its earnings per share by 69% per year. The EPS growth is more impressive than the 50% annual share price gain over the same period. One could therefore conclude that the broader market has become more cautious towards the stock. The reasonably low P/E ratio of 7.88 also suggests market apprehension.
You can see how EPS has changed over time in the image below (click on the graph to see the exact values).
We are pleased to report that the CEO is compensated more modestly than most CEOs of similarly capitalized companies. But while it’s still worth checking out CEO compensation, the really important question is whether the company can increase its profits in the future. Dive deeper into earnings with this interactive graph of earnings, revenue, and cash flow from PAM Transportation Services.
A different perspective
It is good to see that PAM Transportation Services has rewarded shareholders with a total shareholder return of 113% over the past twelve months. That’s better than the 50% annualized return over half a decade, which implies the company has been doing better recently. At best, this may hint at genuine trading momentum, implying that now could be a great time to dig deeper. I find it very interesting to look at stock price over the long term as a proxy for company performance. But to really get insight, we also need to consider other information. However, be aware that PAM Transportation Services displays 1 warning sign in our investment analysis you should know…
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Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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