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While Triumph Group, Inc. (NYSE:TGI) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 15% in the last quarter. On the other hand, over the last twelve months the stock has delivered rather impressive returns. Indeed, the share price is up an impressive 101% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.
Since it's been a strong week for Triumph Group shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for Triumph Group
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.
Over the last twelve months Triumph Group went from profitable to unprofitable. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. We might get a clue to explain the share price move by looking to other metrics.
However the year on year revenue growth of 16% would help. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Triumph Group
A Different Perspective
We're pleased to report that Triumph Group shareholders have received a total shareholder return of 101% over one year. There's no doubt those recent returns are much better than the TSR loss of 5% per year over five years. 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Triumph Group has 1 warning sign we think you should be aware of.