The Disconnect Between Earnings Growth and Share Price Return
Carlisle Companies Incorporated (NYSE:CSL) investors have seen their share price fall 29% in the last quarter, but over five years, the share price is 130% higher, outpacing earnings growth of 19% per annum. The company's total shareholder return (TSR) over the same period was 144%, which includes dividends, suggesting that the market perception of Carlisle Companies has largely remained consistent with its underlying fundamentals. However, the recent pullback may provide an opportunity for long-term investors to reassess their holdings.
- The fact that Carlisle Companies' TSR has outperformed its share price return over five years indicates that investors have been able to capture significant value from the company's growth through dividend reinvestment.
- How will the relationship between earnings growth and TSR continue to evolve in the coming years, particularly in light of changing investor expectations and market sentiment?