It hasn't been the best quarter for PVH Corp. (NYSE:PVH) shareholders, since the share price has fallen 11% in that time. But that fact in itself shouldn't obscure what are quite decent returns over the last year. Indeed the stock is up 32% over twelve months, compared to a market return of about 28%.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
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. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During the last year PVH grew its earnings per share (EPS) by 256%. It's fair to say that the share price gain of 32% did not keep pace with the EPS growth. So it seems like the market has cooled on PVH, despite the growth. Interesting. This cautious sentiment is reflected in its (fairly low) P/E ratio of 9.69.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that PVH has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling PVH stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that PVH shareholders have received a total shareholder return of 32% over one year. That's including the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.5% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on PVH it might be wise to click here to see if insiders have been buying or selling shares.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.