Australia markets closed
  • ALL ORDS

    6,373.70
    -10.00 (-0.16%)
     
  • ASX 200

    6,167.00
    -6.80 (-0.11%)
     
  • AUD/USD

    0.7142
    +0.0024 (+0.34%)
     
  • OIL

    39.78
    -0.86 (-2.12%)
     
  • GOLD

    1,903.40
    -1.20 (-0.06%)
     
  • BTC-AUD

    18,599.59
    -47.46 (-0.25%)
     
  • CMC Crypto 200

    260.05
    -1.40 (-0.54%)
     
  • AUD/EUR

    0.6017
    -0.0001 (-0.02%)
     
  • AUD/NZD

    1.0666
    -0.0001 (-0.01%)
     
  • NZX 50

    12,470.34
    +63.05 (+0.51%)
     
  • NASDAQ

    11,692.57
    +29.66 (+0.25%)
     
  • FTSE

    5,860.28
    +74.63 (+1.29%)
     
  • Dow Jones

    28,335.57
    -28.09 (-0.10%)
     
  • DAX

    12,645.75
    +102.69 (+0.82%)
     
  • Hang Seng

    24,918.78
    +132.65 (+0.54%)
     
  • NIKKEI 225

    23,516.59
    +42.32 (+0.18%)
     

Would Shareholders Who Purchased Webjet's (ASX:WEB) Stock Year Be Happy With The Share price Today?

Simply Wall St
·2-min read

Webjet Limited ( ASX:WEB ) shareholders should be happy to see the share price up 14% in the last month. But that's small comfort given the dismal price performance over the last year. Specifically, the stock price slipped by 67% in that time. The share price recovery is not so impressive when you consider the fall. You could argue that the sell-off was too severe.

See our latest analysis for Webjet

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Webjet fell to a loss making position during the year. Some investors no doubt dumped the stock as a result. We hope for shareholders' sake that the company becomes profitable again soon.

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

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

We think that revenue and earnings trends are meaningful measures of a business. This free interactive report on Webjet's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Webjet's total shareholder return (TSR) and its share price return . The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Webjet's TSR of was a loss of 66% for the year. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

We regret to report that Webjet shareholders are down 66% for the year. Unfortunately, that's worse than the broader market decline of 7.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Longer term investors wouldn't be so upset, since they would have made 0.4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Webjet (1 is potentially serious!) that you should be aware of before investing here.

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