By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. For example, the Merit Medical Systems, Inc. (NASDAQ:MMSI) share price is up 43% in the last three years, clearly besting the market return of around 13% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 5.1%.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
See our latest analysis for Merit Medical Systems
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
Merit Medical Systems became profitable within the last three years. That would generally be considered a positive, so we'd expect the share price to be up.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It is of course excellent to see how Merit Medical Systems has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Merit Medical Systems' financial health with this free report on its balance sheet.
A Different Perspective
Merit Medical Systems provided a TSR of 5.1% over the last twelve months. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 5% per year over five year. This suggests the company might be improving over time. Before spending more time on Merit Medical Systems it might be wise to click here to see if insiders have been buying or selling shares.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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.
通過購買指數基金,您可以輕鬆地大致匹配市場回報。但是,如果你以誘人的價格收購優秀的企業,你的投資組合回報率可能會超過平均市場回報。例如,Merit Medical Systems, Inc.(納斯達克股票代碼:MMSI)的股價在過去三年中上漲了43%,顯然超過了約13%(不包括股息)的市場回報率。另一方面,最近的回報並不那麼好,股東僅上漲了5.1%。
Merit Medical Systems在過去三年中實現了盈利。這通常會被視爲利好,因此我們預計股價會上漲。
該公司的每股收益(一段時間內)如下圖所示(點擊查看確切數字)。
當然,很高興看到Merit Medical Systems多年來如何增加利潤,但未來對股東來說更爲重要。通過這份免費的資產負債表報告,更全面地了解Merit Medical Systems的財務狀況。
不同的視角
在過去的十二個月中,Merit Medical Systems的股東總回報率爲5.1%。但這低於市場平均水平。一線希望是,收益實際上好於五年內每年5%的平均年回報率。這表明隨着時間的推移,該公司可能會有所改善。在花更多時間購買Merit Medical Systems之前,明智的做法可能是點擊此處查看內部人士是否在買入或賣出股票。