Waberer's International Nyrt (BST:3WB) hikes 11% this week, taking three-year gains to 151%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. For example, the Waberer's International Nyrt. (BST:3WB) share price has soared 151% in the last three years. That sort of return is as solid as granite. On top of that, the share price is up 15% in about a quarter.

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

See our latest analysis for Waberer's International Nyrt

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 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.

A Different Perspective

It's nice to see that Waberer's International Nyrt shareholders have received a total shareholder return of 19% over the last year. Of course, that includes the dividend. Notably the five-year annualised TSR loss of 9% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. 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. For example, we've discovered 1 warning sign for Waberer's International Nyrt that you should be aware of before investing here.

We will like Waberer's International Nyrt better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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