If You Had Bought Macro Enterprises (CVE:MCR) Stock Three Years Ago, You Could Pocket A 135% Gain Today

August 20, 2019
  •  Updated
August 15, 2022
TSXV:MCR
Source: Shutterstock

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Macro Enterprises Inc. (CVE:MCR) share price is 135% higher than it was three years ago. How nice for those who held the stock!

Check out our latest analysis for Macro Enterprises

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...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During three years of share price growth, Macro Enterprises moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

TSXV:MCR Past and Future Earnings, August 20th 2019
TSXV:MCR Past and Future Earnings, August 20th 2019

We know that Macro Enterprises has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Macro Enterprises's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Macro Enterprises shareholders have received a total shareholder return of 17% over the last year. There's no doubt those recent returns are much better than the TSR loss of 0.8% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. Before deciding if you like the current share price, check how Macro Enterprises scores on these 3 valuation metrics.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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.

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