Vipshop Holdings (NYSE:VIPS) achieves higher total shareholder returns over five years compared to earnings growth

Vipshop Holdings Limited (NYSE:VIPS) shareholders have seen a recent drop in the share price, causing some concern. However, looking at the bigger picture, the company has shown strong growth over the past five years, with a 90% increase in share price, outperforming the market return of 82%. Despite this positive trend, there has been a 52% decrease in share price over the last three years, which may worry some investors.

The company’s earnings per share (EPS) have grown impressively at 36% annually over the past five years, outpacing the share price gain of 14% during the same period. This discrepancy suggests that the market may be cautious about the stock, as indicated by the relatively low P/E ratio of 7.33.

Looking ahead, investors may be interested in the company’s revenue growth potential. Analyst revenue forecasts can provide valuable insights into the future performance of Vipshop Holdings.

In terms of total shareholder return (TSR), Vipshop Holdings has delivered a solid 94% TSR over the past five years, driven largely by dividend payments. This outperforms the share price return and highlights the importance of considering dividends in evaluating overall returns.

While the company’s recent TSR of 4.0% falls short of the market, its long-term track record of 14% annual TSR over five years is promising. Investors may want to keep an eye on Vipshop Holdings for potential future growth opportunities.

As always, it’s important to consider all factors when making investment decisions. Vipshop Holdings has shown resilience and growth over time, but investors should be aware of potential risks and market conditions.