While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you find (and hold) a big winner, you can markedly improve your finances. For example, MarineMax, Inc. (NYSE:HZO) has generated a beautiful 320% return in just a single year. It’s also good to see the share price up 36% over the last quarter. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report. Looking back further, the stock price is 148% higher than it was three years ago.
Check out our latest analysis for MarineMax
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
MarineMax was able to grow EPS by 205% in the last twelve months. This EPS growth is significantly lower than the 320% increase in the share price. This indicates that the market is now more optimistic about the stock.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It is of course excellent to see how MarineMax has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at MarineMax’s financial health with this free report on its balance sheet.
A Different Perspective
It’s good to see that MarineMax has rewarded shareholders with a total shareholder return of 320% in the last twelve months. That’s better than the annualised return of 30% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It’s always interesting to track share price performance over the longer term. But to understand MarineMax better, we need to consider many other factors. Like risks, for instance. Every company has them, and we’ve spotted 3 warning signs for MarineMax (of which 1 makes us a bit uncomfortable!) you should know about.
If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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This article by Simply Wall St is general in nature. 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.
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