Curtiss-Wright's (NYSE:CW) 19% CAGR outpaced the company's earnings growth over the same five-year period

Curtiss-Wright Corporation +0.69%

Curtiss-Wright Corporation

CW

250.24

+0.69%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of Curtiss-Wright Corporation (NYSE:CW) stock is up an impressive 128% over the last five years. It's also good to see the share price up 15% over the last quarter. But this could be related to the strong market, which is up 9.4% in the last three months.

Since it's been a strong week for Curtiss-Wright shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Curtiss-Wright

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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 half a decade, Curtiss-Wright managed to grow its earnings per share at 8.1% a year. This EPS growth is lower than the 18% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

earnings-per-share-growth
NYSE:CW Earnings Per Share Growth March 29th 2024

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 interactive report on Curtiss-Wright's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Curtiss-Wright, it has a TSR of 134% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's good to see that Curtiss-Wright has rewarded shareholders with a total shareholder return of 47% in the last twelve months. That's including the dividend. That gain is better than the annual TSR over five years, which is 19%. Therefore it seems like sentiment around the company has been positive lately. 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 Curtiss-Wright better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Curtiss-Wright you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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