If You Had Bought Vincit Oyj (HEL:VINCIT) Stock A Year Ago, You Could Pocket A 199% Gain Today

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Vincit Oyj (HEL:VINCIT) share price had more than doubled in just one year - up 199%. On top of that, the share price is up 33% in about a quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. The longer term returns have not been as good, with the stock price only 25% higher than it was three years ago.

Check out our latest analysis for Vincit Oyj

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.

During the last year Vincit Oyj grew its earnings per share (EPS) by 347%. This EPS growth is significantly higher than the 199% increase in the share price. So it seems like the market has cooled on Vincit Oyj, despite the growth. Interesting.

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

We know that Vincit Oyj has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Vincit Oyj will grow revenue in the future.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Vincit Oyj the TSR over the last year was 202%, which is better than the share price return mentioned above. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

Pleasingly, Vincit Oyj's total shareholder return last year was 202%. And yes, that does include the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 10%. Given the track record of solid returns over varying time frames, it might be worth putting Vincit 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 instance, we've identified 2 warning signs for Vincit Oyj that 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 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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