If You Had Bought Viemed Healthcare (TSE:VMD) Shares Three Years Ago You'd Have Earned 319% Returns

It hasn't been the best quarter for Viemed Healthcare, Inc. (TSE:VMD) shareholders, since the share price has fallen 14% in that time. But over the last three years the stock has shone bright like a diamond. Over that time, we've been excited to watch the share price climb an impressive 319%. As long term investors the recent fall doesn't detract all that much from the longer term story. Only time will tell if there is still too much optimism currently reflected in the share price.

See our latest analysis for Viemed Healthcare

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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).

Viemed Healthcare was able to grow its EPS at 61% per year over three years, sending the share price higher. Notably, the 61% average annual share price gain matches up nicely with the EPS growth rate. That suggests that the market sentiment around the company hasn't changed much over that time. Quite to the contrary, the share price has arguably reflected the EPS growth.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

It's nice to see that Viemed Healthcare shareholders have gained 47% (in total) over the last year. That falls short of the 61% it has made, for shareholders, each year, over three years. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Viemed Healthcare (of which 1 makes us a bit uncomfortable!) you should know about.

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.

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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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