SkyWest, Inc. (NASDAQ:SKYW) shareholders might be concerned after seeing the share price drop 11% in the last quarter. But in stark contrast, the returns over the last half decade have impressed. In fact, the share price is 295% higher today. So while it's never fun to see a share price fall, it's important to look at a longer time horizon. Of course, that doesn't necessarily mean it's cheap now.

While this past week has detracted from the company's five-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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, SkyWest managed to grow its earnings per share at 3.7% a year. This EPS growth is slower than the share price growth of 32% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

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

We know that SkyWest has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on SkyWest's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that SkyWest shareholders have received a total shareholder return of 29% over the last year. However, the TSR over five years, coming in at 32% per year, is even more impressive. It's always interesting to track share price performance over the longer term. But to understand SkyWest better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for SkyWest you should know about.

We will like SkyWest better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider 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.