If You Had Bought Dottikon Es Holding (VTX:DESN) Shares Five Years Ago You'd Have Earned 856% Returns

Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. To wit, the Dottikon Es Holding AG (VTX:DESN) share price has soared 856% over five years. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 87% in about a quarter.

It really delights us to see such great share price performance for investors.

View our latest analysis for Dottikon Es Holding

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During five years of share price growth, Dottikon Es Holding achieved compound earnings per share (EPS) growth of 48% per year. So the EPS growth rate is rather close to the annualized share price gain of 57% per year. That suggests that the market sentiment around the company hasn't changed much over that time. In fact, the share price seems to largely reflect the EPS growth.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Dottikon Es Holding's key metrics by checking this interactive graph of Dottikon Es Holding's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Dottikon Es Holding shareholders have received a total shareholder return of 211% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 57% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. To that end, you should be aware of the 1 warning sign we've spotted with Dottikon Es Holding .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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