It is a pleasure to report that the Jack in the Box Inc. (NASDAQ:JACK) is up 32% in the last quarter. But that doesn't change the fact that the returns over the last year have trailed the market. Indeed, shareholders received returns of 26% whereas the market is down , returning (-26%) over the last year.

If the past week is anything to go by, investor sentiment for Jack in the Box isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for Jack in the Box

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.

Unhappily, Jack in the Box had to report a 30% decline in EPS over the last year. This proportional reduction in earnings per share isn't far from the 27% decrease in the share price. So it seems that the market sentiment has not changed much, despite the weak results. Rather, the share price is remains a similar multiple of the EPS, suggesting the outlook remains the same.

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

Dive deeper into Jack in the Box's key metrics by checking this interactive graph of Jack in the Box's earnings, revenue and cash flow.

A Different Perspective

We regret to report that Jack in the Box shareholders are down 26% for the year (even including dividends). Unfortunately, that's worse than the broader market decline of 23%. 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. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 3% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Jack in the Box (of which 1 is potentially serious!) you should know about.

But note: Jack in the Box may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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. 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.