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EPS is a Misleading Indicator

 

BankUnited Financial (BKUN.A) reported five consecutive years of positive EPS (black bars) contrasted by negative OPS (red bars) an anomaly known as .Cashless Earnings.. Over the previous five years the stock traded as high as $32 and on September 25th closed at $1 per share representing a 97% decline.

The validity of EPS (earnings per share), long considered by Wall Street to be the leading predictor of value, is being challenged by OPS (Operational-cashflow Per Share). StockDiagnostics.com monitors cash flow for over 10,000 companies and is the exclusive publisher of OPS data.

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