If You Had Bought BGR Energy Systems (NSE:BGRENERGY) Shares A Year Ago You'd Have Earned 106% Returns

Unless you borrow money to invest, the potential losses are limited. 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 BGR Energy Systems Limited (NSE:BGRENERGY) share price has soared 106% return in just a single year. In more good news, the share price has risen 11% in thirty days. Unfortunately the longer term returns are not so good, with the stock falling 53% in the last three years.

Check out our latest analysis for BGR Energy Systems

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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 last year BGR Energy Systems saw its earnings per share (EPS) drop below zero. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. We might get a clue to explain the share price move by looking to other metrics.

BGR Energy Systems' revenue actually dropped 70% over last year. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling BGR Energy Systems stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that BGR Energy Systems shareholders have received a total shareholder return of 106% over one year. That certainly beats the loss of about 9% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand BGR Energy Systems better, we need to consider many other factors. For instance, we've identified 2 warning signs for BGR Energy Systems (1 is significant) that you should be aware of.

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 IN 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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