Yahoo Finance Shareholders Are Raving About How The StorageVault Canada (CVE:SVI) Share Price Increased 840%
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. Just think about the savvy investors who held StorageVault Canada Inc. (CVE:SVI) shares for the last five years, while they gained 840%. And this is just one example of the epic gains achieved by some long term investors. The last week saw the share price soften some 1.8%.
We love happy stories like this one. The company should be really proud of that performance!
See our latest analysis for StorageVault Canada
Because StorageVault Canada made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years StorageVault Canada saw its revenue grow at 53% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 57%(per year) over the same period. Despite the strong run, top performers like StorageVault Canada have been known to go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
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 report showing analyst forecasts should help you form a view on StorageVault Canada
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, StorageVault Canada's TSR for the last 5 years was 858%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
It's nice to see that StorageVault Canada shareholders have received a total shareholder return of 36% over the last year. That's including the dividend. However, that falls short of the 57% TSR per annum it has made for shareholders, each year, over five years. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. It's always interesting to track share price performance over the longer term. But to understand StorageVault Canada better, we need to consider many other factors. For example, we've discovered 3 warning signs for StorageVault Canada (1 makes us a bit uncomfortable!) that you should be aware of before investing here.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.
