How Much Did LightInTheBox Holding's(NYSE:LITB) Shareholders Earn From Share Price Movements Over The Last Five Years?
LightInTheBox Holding Co., Ltd. (NYSE:LITB) shareholders will doubtless be very grateful to see the share price up 71% in the last quarter. But that doesn't change the fact that the returns over the last five years have been less than pleasing. You would have done a lot better buying an index fund, since the stock has dropped 45% in that half decade.
View our latest analysis for LightInTheBox Holding
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.
LightInTheBox Holding became profitable within the last five years. Most would consider that to be a good thing, so it's counter-intuitive to see the share price declining. Other metrics may better explain the share price move.
It could be that the revenue decline of 7.5% per year is viewed as evidence that LightInTheBox Holding is shrinking. This has probably encouraged some shareholders to sell down the stock.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at LightInTheBox Holding's financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that LightInTheBox Holding shareholders have received a total shareholder return of 25% over the last year. Notably the five-year annualised TSR loss of 7.8% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand LightInTheBox Holding better, we need to consider many other factors. For example, we've discovered 3 warning signs for LightInTheBox Holding (1 is concerning!) that you should be aware of before investing here.
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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. 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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