Listed for the most-recent fiscal year (Year One) and the third fiscal year (Year Three), this figure represents the compounded or annualized growth rate in a company's earnings per share. The one-year growth rate is calculated from the second fiscal year (FY2) to the most recently completed fiscal year (FY1); the three-year growth rate is calculated from the fourth fiscal year (FY4) to the most recently completed fiscal year (FY1).
EPS growth shows how rapidly a company has been able to boost its "bottom line" on a per-share basis. Growth investors might look for companies with EPS growth of, say, 20% or more. If EPS growth is NMF, it means the company lost money in one of the years used in the growth-rate calculation, making any growth rate Not Meaningful.
This figure is calculated in-house, based on EPS from the current Fiscal Year End and EPS from the last Fiscal Year (or from three years ago).
For the Pros
By comparing the three-year annualized growth rate with the one-year growth rate, you can see whether a company’s EPS growth is speeding up or slowing down. Also, by comparing net income growth with EPS growth, you can see how much, if any, share issuances have slowed down EPS.