FB

Meta Platforms, Inc.

196.64
USD
0.51%
196.64
USD
0.51%
169.00 384.33
52 weeks
52 weeks

Mkt Cap 465.31B

Shares Out 2.37B

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Investing in FFBW (NASDAQ:FFBW) three years ago would have delivered you a 27% gain

Low-cost index funds make it easy to achieve average market returns. But in any diversified portfolio of stocks, you'll see some that fall short of the average. Unfortunately for shareholders, while the FFBW, Inc. (NASDAQ:FFBW) share price is up 27% in the last three years, that falls short of the market return. In the last year the stock has gained 5.3%. So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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. FFBW was able to grow its EPS at 27% per year over three years, sending the share price higher. The average annual share price increase of 8% is actually lower than the EPS growth. So it seems investors have become more cautious about the company, over time. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of FFBW's earnings, revenue and cash flow. A Different Perspective It's nice to see that FFBW shareholders have gained 5.3% (in total) over the last year. The TSR has been even better over three years, coming in at 8% per year. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for FFBW that you should be aware of before investing here. But note: FFBW may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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. The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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