The Sequent Scientific (NSE:SEQUENT) Share Price Is Up 102% And Shareholders Are Boasting About It

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Sequent Scientific Limited (NSE:SEQUENT) share price has soared 102% return in just a single year. On top of that, the share price is up 40% in about a quarter. Looking back further, the stock price is 32% higher than it was three years ago.

See our latest analysis for Sequent Scientific

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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 the last year Sequent Scientific grew its earnings per share (EPS) by 40%. This EPS growth is significantly lower than the 102% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago. The fairly generous P/E ratio of 45.53 also points to this optimism.

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

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 Sequent Scientific'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 Sequent Scientific rewarded shareholders with a total shareholder return of 102% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 10%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 2 warning signs for Sequent Scientific that you should be aware of before investing here.

Of course Sequent Scientific 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 IN exchanges.

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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. 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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