NTG Nordic Transport Group (CPH:NTG) hikes 12% this week, taking five-year gains to 194%

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For instance, the price of NTG Nordic Transport Group A/S (CPH:NTG) stock is up an impressive 194% over the last five years. It's even up 12% in the last week.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

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While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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, NTG Nordic Transport Group 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.

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 NTG Nordic Transport Group's key metrics by checking this interactive graph of NTG Nordic Transport Group's earnings, revenue and cash flow.

A Different Perspective

While it's certainly disappointing to see that NTG Nordic Transport Group shares lost 8.9% throughout the year, that wasn't as bad as the market loss of 32%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 24% for each year. It could be that the business is just facing some short term problems, but shareholders should keep a close eye on the fundamentals. Is NTG Nordic Transport Group cheap compared to other companies? These 3 valuation measures might help you decide.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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.