Is Saint Jean Groupe Société anonyme's (EPA:SABE) Share Price Gain Of 102% Well Earned?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. 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 Saint Jean Groupe Société anonyme (EPA:SABE) stock is up an impressive 102% over the last five years. On top of that, the share price is up 15% in about a quarter. But this could be related to the strong market, which is up 14% in the last three months.

See our latest analysis for Saint Jean Groupe Société anonyme

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During five years of share price growth, Saint Jean Groupe Société anonyme achieved compound earnings per share (EPS) growth of 26% per year. The EPS growth is more impressive than the yearly share price gain of 15% over the same period. Therefore, it seems the market has become relatively pessimistic about the company.

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

It might be well worthwhile taking a look at our free report on Saint Jean Groupe Société anonyme's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Saint Jean Groupe Société anonyme's total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Saint Jean Groupe Société anonyme's TSR of 111% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that Saint Jean Groupe Société anonyme shareholders have received a total shareholder return of 13% over one year. However, the TSR over five years, coming in at 16% per year, is even more impressive. It's always interesting to track share price performance over the longer term. But to understand Saint Jean Groupe Société anonyme better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Saint Jean Groupe Société anonyme (including 1 which makes us a bit uncomfortable) .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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