Close Menu
  • Home
  • Business News
    • Entrepreneurship
  • Investments
  • Markets
  • Opinion
  • Politics
  • Startups
    • Stock Market
  • Trending
    • Technology
  • Online Jobs

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

What's Hot

Tech Entrepreneurship: Eliminating waste and eliminating scarcity

July 17, 2024

AI for Entrepreneurs and Small Business Owners

July 17, 2024

Young Entrepreneurs Succeed in Timor-Leste Business Plan Competition

July 17, 2024
Facebook X (Twitter) Instagram
  • Home
  • Business News
    • Entrepreneurship
  • Investments
  • Markets
  • Opinion
  • Politics
  • Startups
    • Stock Market
  • Trending
    • Technology
  • Online Jobs
Facebook X (Twitter) Instagram Pinterest
Prosper planet pulse
  • Home
  • Privacy Policy
  • About us
    • Advertise with Us
  • AFFILIATE DISCLOSURE
  • Contact
  • DMCA Policy
  • Our Authors
  • Terms of Use
  • Shop
Prosper planet pulse
Home»Technology»Pfeiffer Vacuum Technology’s ( ETR:PFV ) five-year total shareholder return has outpaced its underlying earnings growth.
Technology

Pfeiffer Vacuum Technology’s ( ETR:PFV ) five-year total shareholder return has outpaced its underlying earnings growth.

prosperplanetpulse.comBy prosperplanetpulse.comJuly 13, 2024No Comments4 Mins Read0 Views
Share Facebook Twitter Pinterest LinkedIn Tumblr Email
Share
Facebook Twitter LinkedIn Pinterest Email


Equity investors are typically looking for stocks that will outperform the overall market. Active stock selection involves risk (diversification is necessary), but it can also produce excess returns. That said, Pfeiffer Vacuum Technology’s share price has risen 27% over five years, comfortably beating the market return of 4.6% excluding dividends. However, more recent returns have been less impressive, with the stock returning just 8.4% including dividends last year.

Last week we saw the company’s five-year earnings loss slip, but let’s take a look at the recent trends in the underlying business to see if earnings are in line.

Read our latest analysis for Pfeiffer Vacuum Technologies

In his essay Graham and Doddsville’s Superinvestors Warren Buffett has said that share prices do not always rationally reflect the value of a company. An imperfect but simple way to think about how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) against the share price movement.

During the five years that the share price has grown, Pfeiffer Vacuum Technology has achieved compound annual growth in earnings per share (EPS) of 2.3%. This EPS growth rate is lower than the 5% annual growth rate of the share price over the same period. It is therefore reasonable to consider that the market values ​​the company more highly than it did five years ago. This is not necessarily surprising given the five-year track record of earnings growth.

You can see below how EPS has changed over time (discover the exact values ​​by clicking on the image).

Earnings per Share Growth
XTRA:PFV Earnings Per Share Growth 07/13/2024

Before buying or selling a stock, we always recommend a close look at historic growth trends, which you can find here.

What about dividends?

In addition to measuring the price-to-earnings ratio, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that factors in the value of cash dividends (assuming that any dividend received was reinvested) as well as the calculated value of any discounted capital raisings and spin-offs. As such, for companies that pay generous dividends, the TSR is often much higher than the price-to-earnings ratio. In the case of Pfeiffer Vacuum Technology, the TSR for the past 5 years is 39%, which exceeds the price-to-earnings ratio mentioned earlier. Thus, the dividends paid by the company have boosted the price-to-earnings ratio. total Shareholder returns.

A different perspective

It’s good to see that Pfeiffer Vacuum Technology has delivered a total shareholder return of 8.4% to shareholders in the last twelve months, and that includes dividends. This is better than the 7% annualized return over five years, suggesting the company has been performing well recently. In the best-case scenario, this could suggest some real business momentum, and now could be a good time to dig deeper. While it’s well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important than that. Still, it’s hard to say why Pfeiffer Vacuum Technology is a strong player. One warning sign in investment analysis things you should know…

Pfeiffer Vacuum Technology would become even more attractive if we saw some significant insider buying, so check this out while we wait. free A list of undervalued stocks (mostly small caps) that have seen significant insider buying recently.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges.

Valuation is complicated, but we can help make it simple.

investigate Pfeiffer Vacuum Technology By checking our comprehensive analysis, you can see whether it may be overvalued or undervalued. Fair value estimates, risks and warnings, dividends, insider trading, financial strength.

View your free analysis

Have feedback about this article? Concerns about the content? contact Please contact us directly. Or email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We use only unbiased methodologies to provide commentary based on historical data and analyst forecasts, and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks, and does not take into account your objectives, or your financial situation. We seek to provide long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

Valuation is complicated, but we can help make it simple.

investigate Pfeiffer Vacuum Technology By checking our comprehensive analysis, you can see whether it may be overvalued or undervalued. Fair value estimates, risks and warnings, dividends, insider trading, financial strength.

View your free analysis

Have feedback about this article? Concerns about the content? Contact us directly. Or email us at editorial-team@simplywallst.com



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
prosperplanetpulse.com
  • Website

Related Posts

Technology

Empowered Funds LLC Increases Holdings in Micron Technology, Inc. (NASDAQ:MU)

July 14, 2024
Technology

Portland Film, Animation and Technology Festival Returns with Over 100 Films

July 14, 2024
Technology

Quest from the infinite stairs

July 14, 2024
Technology

Intel and State of Oregon Advance National Semiconductor Technology Center

July 14, 2024
Technology

Leveraging Technology to Boost Malaysia’s Sports Economy – OpEd – Eurasia Review

July 14, 2024
Technology

Digital technology can help avoid medical malpractice lawsuits: Judge Madhav Devi

July 14, 2024
Add A Comment
Leave A Reply Cancel Reply

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Editor's Picks

The rule of law is more important than feelings about Trump | Opinion

July 15, 2024

OPINION | Biden needs to follow through on promise to help Tulsa victims

July 15, 2024

Opinion | Why China is off-limits to me now

July 15, 2024

Opinion | Fast food chains’ value menu wars benefit consumers

July 15, 2024
Latest Posts

ATLANTIC-ACM Announces 2024 U.S. Business Connectivity Service Provider Excellence Awards

July 10, 2024

Costco’s hourly workers will get a pay raise. Read the CEO memo.

July 10, 2024

Why a Rockland restaurant closed after 48 years

July 10, 2024

Stay Connected

Twitter Linkedin-in Instagram Facebook-f Youtube

Subscribe