Advertisement
Australia markets open in 5 hours 49 minutes
  • ALL ORDS

    7,862.30
    -147.10 (-1.84%)
     
  • AUD/USD

    0.6419
    -0.0026 (-0.40%)
     
  • ASX 200

    7,612.50
    -140.00 (-1.81%)
     
  • OIL

    85.26
    -0.15 (-0.18%)
     
  • GOLD

    2,400.10
    +17.10 (+0.72%)
     
  • Bitcoin AUD

    97,957.11
    -1,748.12 (-1.75%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

Investing in Seacoast Banking Corporation of Florida (NASDAQ:SBCF) five years ago would have delivered you a 81% gain

Seacoast Banking Corporation of Florida (NASDAQ:SBCF) shareholders might be concerned after seeing the share price drop 16% in the last quarter. But the silver lining is the stock is up over five years. In that time, it is up 80%, which isn't bad, but is below the market return of 124%.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

See our latest analysis for Seacoast Banking Corporation of Florida

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

ADVERTISEMENT

Over half a decade, Seacoast Banking Corporation of Florida managed to grow its earnings per share at 30% a year. The EPS growth is more impressive than the yearly share price gain of 12% over the same period. Therefore, it seems the market has become relatively pessimistic about the company.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
earnings-per-share-growth

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. It might be well worthwhile taking a look at our free report on Seacoast Banking Corporation of Florida's earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Seacoast Banking Corporation of Florida shareholders have received a total shareholder return of 50% over one year. Of course, that includes the dividend. That's better than the annualised return of 13% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Seacoast Banking Corporation of Florida better, we need to consider many other factors. Take risks, for example - Seacoast Banking Corporation of Florida has 2 warning signs we think you should be aware of.

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 US exchanges.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.