Live Ventures (NASDAQ:LIVE) shareholder returns have been solid, earning 134% in 5 years
Live Ventures (NASDAQ:LIVE) shareholders have seen a solid return of 134% over the past five years, with an 83% increase in the last quarter. The company became profitable in the last half-decade, contributing to its strong share price growth. Over the past year, Live Ventures provided a total shareholder return (TSR) of 21%, aligning closely with broader market returns. However, potential investors should be aware of four warning signs associated with the company.
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. Long term Live Ventures Incorporated (NASDAQ:LIVE) shareholders would be well aware of this, since the stock is up 134% in five years. It's also good to see the share price up 83% over the last quarter.
Since it's been a strong week for Live Ventures shareholders, let's have a look at trend of the longer term fundamentals.
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While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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 half decade, Live Ventures became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.
A Different Perspective
Live Ventures provided a TSR of 21% over the year. That's fairly close to the broader market return. Most would be happy with a gain, and it helps that the year's return is actually better than the average return over five years, which was 19%. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand Live Ventures better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Live Ventures (of which 2 are a bit unpleasant!) you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
