Velesto Energy Berhad (KLSE:VELESTO) delivers shareholders solid 26% CAGR over 3 years, surging 12% in the last week alone

By buying an index fund, you can roughly match the market return with ease. But if you pick the right individual stocks, you could make more than that. Just take a look at Velesto Energy Berhad (KLSE:VELESTO), which is up 100%, over three years, soundly beating the market return of 4.5% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 25% , including dividends .

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

View our latest analysis for Velesto Energy Berhad

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 three years of share price growth, Velesto Energy Berhad 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 image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

We know that Velesto Energy Berhad has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Velesto Energy Berhad stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that Velesto Energy Berhad has rewarded shareholders with a total shareholder return of 25% in the last twelve months. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.3% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before forming an opinion on Velesto Energy Berhad you might want to consider these 3 valuation metrics.

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 Malaysian 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.