Investors Who Bought Remedy Entertainment Oyj (HEL:REMEDY) Shares Three Years Ago Are Now Up 557%

For us, stock picking is in large part the hunt for the truly magnificent stocks. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. For example, the Remedy Entertainment Oyj (HEL:REMEDY) share price is up a whopping 557% in the last three years, a handsome return for long term holders. Also pleasing for shareholders was the 24% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

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

See our latest analysis for Remedy Entertainment Oyj

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

During three years of share price growth, Remedy Entertainment Oyj achieved compound earnings per share growth of 92% per year. Notably, the 87% average annual share price gain matches up nicely with the EPS growth rate. This observation indicates that the market's attitude to the business hasn't changed all that much. Au contraire, the share price change has arguably mimicked the EPS growth.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It is of course excellent to see how Remedy Entertainment Oyj has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Remedy Entertainment Oyj's financial health with this free report on its balance sheet.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. 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 569% 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 220%. That's including the dividend. That's better than the annualized TSR of 88% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Remedy Entertainment Oyj on your watchlist. 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 2 warning signs 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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