Bilendi (EPA:ALBLD) shareholder returns have been solid, earning 225% in 5 years

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Bilendi SA (EPA:ALBLD) share price has soared 225% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 48% gain in the last three months.

Since it's been a strong week for Bilendi shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Bilendi

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 the last half decade, Bilendi became profitable. 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. Since the company was unprofitable five years ago, but not three years ago, it's worth taking a look at the returns in the last three years, too. We can see that the Bilendi share price is up 137% in the last three years. Meanwhile, EPS is up 24% per year. Notably, the EPS growth has been slower than the annualised share price gain of 33% over three years. So one can reasonably conclude the market is more enthusiastic about the stock than it was three years ago.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

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

A Different Perspective

It's nice to see that Bilendi shareholders have received a total shareholder return of 147% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 27% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Bilendi better, we need to consider many other factors. For example, we've discovered 2 warning signs for Bilendi that you should be aware of before investing here.

Of course Bilendi 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 FR 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.