The Quercus TFI (WSE:QRS) Share Price Is Up 48% And Shareholders Are Holding On

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Quercus TFI S.A. (WSE:QRS) share price is 48% higher than it was a year ago, much better than the market return of around 4.2% (not including dividends) in the same period. So that should have shareholders smiling. Unfortunately the longer term returns are not so good, with the stock falling 36% in the last three years.

Check out our latest analysis for Quercus TFI

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

Quercus TFI was able to grow EPS by 74% in the last twelve months. It's fair to say that the share price gain of 48% did not keep pace with the EPS growth. So it seems like the market has cooled on Quercus TFI, despite the growth. Interesting. The caution is also evident in the lowish P/E ratio of 9.49.

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

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

It's good to see that Quercus TFI has rewarded shareholders with a total shareholder return of 48% in the last twelve months. Notably the five-year annualised TSR loss of 1.9% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Quercus TFI better, we need to consider many other factors. Take risks, for example - Quercus TFI has 3 warning signs (and 2 which are potentially serious) we think you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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