Yahoo Finance Evoqua Water Technologies' (NYSE:AQUA) investors will be pleased with their solid 160% return over the last three years
It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. To wit, the Evoqua Water Technologies Corp. (NYSE:AQUA) share price has flown 160% in the last three years. That sort of return is as solid as granite. And in the last month, the share price has gained 21%. But this could be related to good market conditions -- stocks in its market are up 12% in the last month.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Check out our latest analysis for Evoqua Water Technologies
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
Evoqua Water Technologies became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
This free interactive report on Evoqua Water Technologies' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Evoqua Water Technologies shareholders have gained 5.8% (in total) over the last year. But the three year TSR of 38% per year is even better. It's always interesting to track share price performance over the longer term. But to understand Evoqua Water Technologies better, we need to consider many other factors. Take risks, for example - Evoqua Water Technologies has 2 warning signs (and 1 which is potentially serious) we think you should know about.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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