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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. Long term National Beverage Corp. (NASDAQ:FIZZ) shareholders would be well aware of this, since the stock is up 133% in five years. It's also good to see the share price up 24% over the last quarter.
Since the long term performance has been good but there's been a recent pullback of 6.7%, let's check if the fundamentals match the share price.
See our latest analysis for National Beverage
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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, National Beverage managed to grow its earnings per share at 19% a year. This EPS growth is remarkably close to the 18% average annual increase in the share price. This indicates that investor sentiment towards the company has not changed a great deal. In fact, the share price seems to largely reflect the EPS growth.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that National Beverage has improved its bottom line lately, but is it going to grow revenue? Check if analysts think National Beverage will grow revenue in the future.
What about the Total Shareholder Return (TSR)?
We've already covered National Beverage's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that National Beverage's TSR of 161% over the last 5 years is better than the share price return.
A Different Perspective
We're pleased to report that National Beverage shareholders have received a total shareholder return of 26% over one year. That's better than the annualised return of 21% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before forming an opinion on National Beverage you might want to consider these 3 valuation metrics.