Peoples Bancorp of North Carolina's (NASDAQ:PEBK) Shareholders Are Down 36% On Their Shares
Peoples Bancorp of North Carolina, Inc. (NASDAQ:PEBK) shareholders should be happy to see the share price up 22% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. In fact, the price has declined 36% in a year, falling short of the returns you could get by investing in an index fund.
View our latest analysis for Peoples Bancorp of North Carolina
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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.
Unfortunately Peoples Bancorp of North Carolina reported an EPS drop of 18% for the last year. This reduction in EPS is not as bad as the 36% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The less favorable sentiment is reflected in its current P/E ratio of 9.09.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into Peoples Bancorp of North Carolina's key metrics by checking this interactive graph of Peoples Bancorp of North Carolina's earnings, revenue and cash flow.
What about the Total Shareholder Return (TSR)?
We've already covered Peoples Bancorp of North Carolina's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Peoples Bancorp of North Carolina's TSR of was a loss of 34% for the year. That wasn't as bad as its share price return, because it has paid dividends.
A Different Perspective
While the broader market gained around 19% in the last year, Peoples Bancorp of North Carolina shareholders lost 34% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 2.7%, 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. If you would like to research Peoples Bancorp of North Carolina in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
But note: Peoples Bancorp of North Carolina 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.
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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