Did You Miss Remedy Entertainment Oyj's (HEL:REMEDY) Whopping 388% Share Price Gain?

We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. For example, the Remedy Entertainment Oyj (HEL:REMEDY) share price is up a whopping 388% in the last three years, a handsome return for long term holders. Meanwhile the share price is 7.0% higher than it was a week ago.

See our latest analysis for Remedy Entertainment Oyj

There is no denying that markets are sometimes efficient, but prices do not always reflect 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 three years of share price growth, Remedy Entertainment Oyj achieved compound earnings per share growth of 15% per year. This EPS growth is lower than the 70% average annual increase in the share price. This indicates that the market is feeling more optimistic on the stock, after the last few years of progress. It is quite common to see investors become enamoured with a business, after a few years of solid progress. This optimism is also reflected in the fairly generous P/E ratio of 59.18.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Remedy Entertainment Oyj has improved its bottom line lately, but is it going to grow revenue? If you're interested, you could check this free report showing consensus revenue forecasts.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Remedy Entertainment Oyj, it has a TSR of 397% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

Pleasingly, Remedy Entertainment Oyj's total shareholder return last year was 212%. That's including the dividend. That gain actually surpasses the 71% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Remedy Entertainment Oyj on your watchlist. 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. For example, we've discovered 1 warning sign for Remedy Entertainment Oyj that you should be aware of before investing here.

Of course Remedy Entertainment Oyj may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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