Investors in Great Southern Bancorp’s (NASDAQ/GSBC) will be delighted with the 41% annual return over the past five years
The primary purpose of investing long-term is to make money. You want it to rise above the market average. But Great Southern Bancorp, Inc. (NASDAQ:GSBCWith a share-price rise of 20% in five years,, has not achieved that second goal. This is lower than the market return. Stock price has fallen 5.2% over the last year, which was disappointing.
With this in mind, it is worth examining the company’s fundamentals to see if they have been the driving force of long-term performance or are there discrepancies.
See our latest analysis for Great Southern Bancorp
Buffett once said that ships will sail the world, but that the Flat Earth Society would thrive. There will be large discrepancies in price and value in this marketplace …’ We can compare earnings per share (EPS), and share price changes over the time to get an idea of how investor attitudes have changed over time.
Great Southern Bancorp saw a 11% annual compound earnings per share growth over five years. This EPS growth is more than the 4% average annual rise in share price. The market seems to have become quite pessimistic regarding the company. The 9.43 P/E ratio is an indication of this cautious outlook.
Below is an illustration of how EPS has changed in the past. You can see exact values by clicking the image.
We are happy to report that the CEO receives a modest salary than other CEOs in similar-capitalized companies. It is important to pay attention to CEO salaries, but it is more important to ask whether the company can grow its earnings over time. We recommend that you carefully examine the stock before buying or selling it. historic growth trends, available here..
What about Dividends?
Investors should not only measure the share price return but also the total shareholder return (TSR). TSR is a return calculation which accounts for cash dividends (assuming any dividend received was reinvested), and the calculated value any discounted capital raises or spin-offs. The TSR provides a better picture of the stock’s return. The TSR for Great Southern Bancorp over the past 5 years was 41%. This is higher than the share price return. The divergence can be attributed to the dividends, which are obvious.
A Different Perspective
It was unfortunate that Great Southern Bancorp suffered a loss in twelve months. However, the overall market did worse with a loss at 9.4%. The stock’s long-term returns are much more important. The good news is that it has returned 7% each year over the past five years. While it is possible that the business is experiencing short-term problems, shareholders should be vigilant about the fundamentals. It’s always worth looking at the share price performance over a longer period. We need to take into account many other factors in order to better understand Great Southern Bancorp. For instance, consider the ever-present risk of investing. We’ve identified 2 warning signs with Great Southern Bancorp (at least 1 which shouldn’t be ignored) Understanding them is an important part of any investment.
You can’t miss this opportunity to visit another company, one that may have superior financials. No cost list of companies that have proven they can grow earnings.
Please note: The market returns mentioned in this article represent the market weighted returns of stocks trading on US exchanges.
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This article is general in nature by Simply Wall St. We only provide commentary on historical data and analyst projections. Our articles are not meant to be considered financial advice. It is not a recommendation not to buy or sell any stocks and does not take into account your objectives or financial situation. We strive to deliver long-term focused analysis that is based on fundamental data. Our analysis may not take into account the most recent price-sensitive company announcements and qualitative material. Simply Wall St does not hold any position in the stocks mentioned.
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