The 10% return this week takes Navamedic's (OB:NAVA) shareholders five-year gains to 262%

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term Navamedic ASA (OB:NAVA) shareholders would be well aware of this, since the stock is up 261% in five years. It's also up 13% in about a month.

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

Check out our latest analysis for Navamedic

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...' 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 five years of share price growth, Navamedic moved from a loss to profitability. 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.

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

We know that Navamedic has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at Navamedic's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Navamedic shareholders have received a total shareholder return of 33% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 29% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Navamedic better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 3 warning signs for Navamedic you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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