Did You Miss Streamwide's (EPA:ALSTW) Whopping 309% Share Price Gain?

We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. Just think about the savvy investors who held Streamwide S.A. (EPA:ALSTW) shares for the last five years, while they gained 309%. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 23% in about a quarter. But this could be related to the strong market, which is up 14% in the last three months.

View our latest analysis for Streamwide

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...' 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 the five years of share price growth, Streamwide moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It is of course excellent to see how Streamwide has grown profits over the years, but the future is more important for shareholders. This free interactive report on Streamwide's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Streamwide shareholders have received a total shareholder return of 97% over the last year. That's better than the annualised return of 33% over half a decade, implying that the company is doing better recently. 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 Streamwide better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Streamwide you should be aware of.

Of course Streamwide 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. 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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