Did You Participate In Any Of Metalfrio Solutions' (BVMF:FRIO3) Incredible 943% Return?

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. For example, the Metalfrio Solutions S.A. (BVMF:FRIO3) share price is up a whopping 351% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. It's even up 49% in the last week.

See our latest analysis for Metalfrio Solutions

Given that Metalfrio Solutions didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years Metalfrio Solutions saw its revenue grow at 9.3% per year. That's a pretty good long term growth rate. However, the share price gain of 35% during the period is considerably stronger. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Metalfrio Solutions' total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Metalfrio Solutions' TSR of 943% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that Metalfrio Solutions shareholders have received a total shareholder return of 54% over one year. Having said that, the five-year TSR of 60% a year, is even better. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Metalfrio Solutions is showing 2 warning signs in our investment analysis , and 1 of those is potentially serious...

But note: Metalfrio Solutions may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on BR 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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