Jastrzebska Spólka Weglowa (WSE:JSW) Has Gifted Shareholders With A Fantastic 293% Total Return On Their Investment

When you buy a stock there is always a possibility that it could drop 100%. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Jastrzebska Spólka Weglowa S.A. (WSE:JSW) which saw its share price drive 272% higher over five years. It's also good to see the share price up 88% over the last quarter.

See our latest analysis for Jastrzebska Spólka Weglowa

Because Jastrzebska Spólka Weglowa made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, Jastrzebska Spólka Weglowa can boast revenue growth at a rate of 5.0% per year. That's not a very high growth rate considering the bottom line. In comparison, the share price rise of 30% per year over the last half a decade is pretty impressive. While we wouldn't be overly concerned, it might be worth checking whether you think the fundamental business gains really justify the share price action. Some might suggest that the sentiment around the stock is rather positive.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. So it makes a lot of sense to check out what analysts think Jastrzebska Spólka Weglowa will earn in the future (free profit forecasts).

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Jastrzebska Spólka Weglowa's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Jastrzebska Spólka Weglowa's TSR of 293% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

It's nice to see that Jastrzebska Spólka Weglowa shareholders have received a total shareholder return of 149% over the last year. That's better than the annualised return of 31% over half a decade, implying that the company is doing better recently. 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 Jastrzebska Spólka Weglowa better, we need to consider many other factors. Take risks, for example - Jastrzebska Spólka Weglowa has 1 warning sign we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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