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The Cub Energy (CVE:KUB) Share Price Is Up 260% And Shareholders Are Boasting About It

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Cub Energy Inc. (CVE:KUB) share price is 260% higher than it was three years ago. Most would be happy with that. On the other hand, we note it's down 10.0% in about a month. This could be related to the soft market, with stocks down around 3.5% in the last month.

See our latest analysis for Cub Energy

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

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During three years of share price growth, Cub Energy moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

TSXV:KUB Past and Future Earnings, October 21st 2019
TSXV:KUB Past and Future Earnings, October 21st 2019

Dive deeper into Cub Energy's key metrics by checking this interactive graph of Cub Energy's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Cub Energy shareholders have received a total shareholder return of 200% over the last year. That's better than the annualised return of 3.7% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Before forming an opinion on Cub Energy you might want to consider these 3 valuation metrics.

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 CA exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.