Three Years Ago, Investing in Fonterra Co-operative Group (NZSE:FCG) Would Have Yielded a 278% Return

Fonterra Co-operative Group Performance: Fonterra's share price has increased by 131% over the last three years, with an 18% gain in the last three months, indicating strong market sentiment and optimism about the company's future.

Earnings vs. Share Price Growth: The company's earnings per share (EPS) grew at 18% per year, while the share price outpaced this growth at 32% per year, suggesting that the market is re-evaluating the stock positively.

Total Shareholder Return (TSR): Fonterra's total shareholder return over the last three years is 278%, significantly higher than its share price return, largely due to its dividend payments, which have contributed to a 58% TSR over the past year.

Investment Considerations: While the stock shows strong performance, potential investors should be aware of two warning signs before investing, and it's recommended to consider both share price and other financial metrics for a comprehensive analysis.