Grown Rogue International (CSE:GRIN) surges 14% this week, taking three-year gains to 374%

It hasn't been the best quarter for Grown Rogue International Inc. (CSE:GRIN) shareholders, since the share price has fallen 16% in that time. But that doesn't change the fact that the returns over the last three years have been spectacular. In fact, the share price has taken off in that time, up 374%. So you might argue that the recent reduction in the share price is unremarkable in light of the longer term performance. The share price action could signify that the business itself is dramatically improved, in that time.

The past week has proven to be lucrative for Grown Rogue International investors, so let's see if fundamentals drove the company's three-year performance.

See our latest analysis for Grown Rogue International

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Grown Rogue International became profitable within the last three years. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

This free interactive report on Grown Rogue International'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 Grown Rogue International shareholders have received a total shareholder return of 291% over one year. That's better than the annualised return of 34% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Grown Rogue International better, we need to consider many other factors. For instance, we've identified 3 warning signs for Grown Rogue International (1 is concerning) that you should be aware of.

But note: Grown Rogue International 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 Canadian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com