Yahoo Finance NamSys's (CVE:CTZ) Incredible 1208% Share Price Run Shows What Is Possible With Stocks
We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the NamSys Inc. (CVE:CTZ) share price. It's 1208% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. It's down 1.2% in the last seven days.
It really delights us to see such great share price performance for investors.
Check out our latest analysis for NamSys
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.
During five years of share price growth, NamSys achieved compound earnings per share (EPS) growth of 48% per year. This EPS growth is lower than the 67% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It's probably worth noting that the CEO is paid less than the median at similar sized 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
We're pleased to report that NamSys shareholders have received a total shareholder return of 52% over one year. Having said that, the five-year TSR of 67% a year, is even better. Before forming an opinion on NamSys you might want to consider these 3 valuation metrics.
Of course NamSys may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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.
