It hasn’t been the best quarter for uCloudlink Group Inc. (NASDAQ:UCL) shareholders, since the share price has fallen 24% in that time. But that doesn’t change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 98% in that time.

Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.

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To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. 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.

uCloudlink Group was able to grow EPS by 85% in the last twelve months. This EPS growth is reasonably close to the 98% increase in the share price. This makes us think the market hasn’t really changed its sentiment around the company, in the last year. It makes intuitive sense that the share price and EPS would grow at similar rates.

The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It is of course excellent to see how uCloudlink Group has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling uCloudlink Group stock, you should check out this FREE detailed report on its balance sheet.

We’re pleased to report that uCloudlink Group shareholders have received a total shareholder return of 98% over one year. That certainly beats the loss of about 12% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We’ve identified 2 warning signs with uCloudlink Group , and understanding them should be part of your investment process.

If you are like me, then you will not want to miss this free list of undervalued small caps 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.