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NamSys (CVE:CTZ) Shareholders Have Enjoyed A Magnificent 1276% Share Price Gain

We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. To wit, the NamSys Inc. (CVE:CTZ) share price has soared 1276% over five years. If that doesn't get you thinking about long term investing, we don't know what will. It's also good to see the share price up 54% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.

We love happy stories like this one. The company should be really proud of that performance!

See our latest analysis for NamSys

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There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, NamSys achieved compound earnings per share (EPS) growth of 3.5% per year. This EPS growth is slower than the share price growth of 69% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

TSXV:CTZ Past and Future Earnings, February 20th 2020
TSXV:CTZ Past and Future Earnings, February 20th 2020

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on NamSys's 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 NamSys shareholders have received a total shareholder return of 72% over the last year. That's better than the annualised return of 69% 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. It's always interesting to track share price performance over the longer term. But to understand NamSys better, we need to consider many other factors. For instance, we've identified 3 warning signs for NamSys 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 CA exchanges.

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.

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. Thank you for reading.