Earnings growth outpaced the stellar 106% return delivered to Kredyt Inkaso (WSE:KRI) shareholders over the last year

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Kredyt Inkaso S.A. (WSE:KRI) share price has soared 106% return in just a single year. In more good news, the share price has risen 28% in thirty days. The longer term returns have not been as good, with the stock price only 6.7% higher than it was three years ago.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

Check out our latest analysis for Kredyt Inkaso

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Kredyt Inkaso was able to grow EPS by 137% in the last twelve months. This EPS growth is significantly higher than the 106% increase in the share price. So it seems like the market has cooled on Kredyt Inkaso, despite the growth. Interesting. The caution is also evident in the lowish P/E ratio of 10.42.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It might be well worthwhile taking a look at our free report on Kredyt Inkaso's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Kredyt Inkaso shareholders have received a total shareholder return of 106% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 9% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Kredyt Inkaso has 3 warning signs (and 1 which can't be ignored) we think you should know about.

But note: Kredyt Inkaso may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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