The 5-Year EPS CAGR (Compound Annual Growth Rate) measures the average annual growth rate of a company's earnings per share (EPS) over five years. It indicates the company's ability to grow its earnings over time, smoothing any short-term fluctuations. A higher 5-year EPS CAGR suggests strong, consistent profitability growth, while a lower or negative growth rate could signal weaker performance or challenges in generating earnings. This metric is handy for evaluating long-term growth potential.
