It's been a soft week for Xpediator Plc (LON:XPD) shares, which are down 11%. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 194% in that time. So it may be that the share price is simply cooling off after a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.
Check out our latest analysis for Xpediator
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Xpediator was able to grow EPS by 144% in the last twelve months. The share price gain of 194% certainly outpaced the EPS growth. So it's fair to assume the market has a higher opinion of the business than it a year ago. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 50.16.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Xpediator has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Xpediator will grow revenue in the future.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Xpediator's TSR for the last year was 203%, which exceeds the share price return mentioned earlier. And there's no prize for guessing that the dividend payments largely explain the divergence!
A Different Perspective
Pleasingly, Xpediator's total shareholder return last year was 203%. That's including the dividend. What is absolutely clear is that is far preferable to the dismal 1.2% average annual loss suffered over the last three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. It's always interesting to track share price performance over the longer term. But to understand Xpediator better, we need to consider many other factors. Even so, be aware that Xpediator is showing 4 warning signs in our investment analysis , and 1 of those is a bit concerning...