Yahoo Finance Bentley Systems' (NASDAQ:BSY) investors will be pleased with their 11% return over the last year
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Bentley Systems, Incorporated (NASDAQ:BSY) share price is 11% higher than it was a year ago, much better than the market decline of around 1.4% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! We'll need to follow Bentley Systems for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
Check out our latest analysis for Bentley Systems
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During the last year Bentley Systems grew its earnings per share (EPS) by 85%. This EPS growth is significantly higher than the 11% increase in the share price. So it seems like the market has cooled on Bentley Systems, despite the growth. Interesting. Of course, with a P/E ratio of 76.34, the market remains optimistic.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that Bentley Systems has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.
A Different Perspective
It's nice to see that Bentley Systems shareholders have gained 11% over the last year, including dividends. And the share price momentum remains respectable, with a gain of 2.9% in the last three months. This suggests the company is continuing to win over new investors. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 1 warning sign for Bentley Systems that you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.
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