Nordfyns Bank (CPH:NRDF) spikes 12% this week, taking five-year gains to 182%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of Nordfyns Bank A/S (CPH:NRDF) stock is up an impressive 182% over the last five years. On top of that, the share price is up 30% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 18% in 90 days).

The past week has proven to be lucrative for Nordfyns Bank investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Nordfyns Bank

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During the five years of share price growth, Nordfyns Bank moved from a loss to profitability. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

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 Nordfyns Bank's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Nordfyns Bank's TSR for the year was broadly in line with the market average, at 33%. That gain looks pretty satisfying, and it is even better than the five-year TSR of 23% per year. It is possible that management foresight will bring growth well into the future, even if the share price slows down. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 1 warning sign for Nordfyns Bank you should be aware of.

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 Danish 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.