Air Transport Services Group’s (NASDAQ:ATSG) 10% CAGR outpaced company earnings growth over the same five-year period

If you buy and hold a stock for many years, you hope to make a profit. But more than that, you probably want to see it rise more than the market average. Corn Airline Services Group, Inc. (NASDAQ:ATSG) fell short of this second goal, with the stock price rising 63% over five years, which is below market performance. Unfortunately, the stock price is down 1.5% over the past year.

Based on a strong 7-day performance, let’s check what role company fundamentals have played in driving long-term shareholder returns.

See our latest analysis for Air Transport Services Group

To paraphrase Benjamin Graham: in the short term, the market is a voting machine, but in the long term, it is a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get an idea of ​​how investors’ attitudes toward a company change over time.

In five years of share price growth, Air Transport Services Group has gone from loss to profitability. This would generally be viewed as a positive, so we expect the stock price to rise.

The image below shows how EPS has tracked over time (if you click on the image you can see more details).

NasdaqGS: ATSG Earnings Per Share Growth February 10, 2022

It’s probably worth noting that we’ve seen significant insider buying over the past quarter, which we view as a positive. On the other hand, we believe revenue and earnings trends are much more meaningful measures of the business. Dive deeper into earnings with this interactive graph of Air Transport Services Group earnings, revenue and cash flow.

A different perspective

While the broader market gained around 7.0% last year, Air Transport Services Group shareholders lost 1.5%. Even good stock prices sometimes drop, but we want to see improvements in a company’s fundamentals before we get too interested. On the positive side, long-term shareholders have made money, with a gain of 10% per year over half a decade. If fundamentals continue to point to sustainable long-term growth, the current sell-off could be an opportunity to consider. It is always interesting to follow the evolution of the share price over the long term. But to better understand Air Transport Services Group, we need to consider many other factors. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for Air Transport Services Group (1 of which is a little unpleasant!) that you should know about.

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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