is-k12's-(nyse:lrn)-share-price-gain-of-234%-well-earned?

Is K12's (NYSE:LRN) Share Price Gain Of 234% Well Earned?

NYSE:LRN) shareholders would be well aware of this, since the stock is up 234% in five years. Also pleasing for shareholders was the 76% gain in the last three months. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.” data-reactid=”28″ type=”text”>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 K12 Inc. (NYSE:LRN) shareholders would be well aware of this, since the stock is up 234% in five years. Also pleasing for shareholders was the 76% gain in the last three months. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.

Check out our latest analysis for K12 ” data-reactid=”29″ type=”text”> Check out our latest analysis for K12

To quote Buffett, ‘Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace…’ One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, K12 achieved compound earnings per share (EPS) growth of 16% per year. This EPS growth is slower than the share price growth of 27% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that’s hardly shocking given the track record of growth. This optimism is visible in its fairly high P/E ratio of 69.11.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth

detailed report on its balance sheet.” data-reactid=”49″ type=”text”>We know that K12 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 K12 stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

2 warning signs we think you should be aware of.” data-reactid=”51″ type=”text”>It’s nice to see that K12 shareholders have received a total shareholder return of 51% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 27% 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. It’s always interesting to track share price performance over the longer term. But to understand K12 better, we need to consider many other factors. Take risks, for example – K12 has 2 warning signs we think you should be aware of.

list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”52″ type=”text”>For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].” data-reactid=”54″ type=”text”>

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected].

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top