Despite shrinking by zł54m in the past week, Bloober Team (WSE:BLO) shareholders are still up 362% over 5 years

The Bloober Team SA (WSE:BLO) share price has had a bad week, falling 11%. But over five years returns have been remarkably great. In that time, the share price has soared some 362% higher! So we don't think the recent decline in the share price means its story is a sad one. Only time will tell if there is still too much optimism currently reflected in the share price.

Since the long term performance has been good but there's been a recent pullback of 11%, let's check if the fundamentals match the share price.

View our latest analysis for Bloober Team

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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 the five years of share price growth, Bloober Team 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. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. We can see that the Bloober Team share price is up 24% in the last three years. Meanwhile, EPS is up 5.9% per year. That makes the EPS growth rather close to the annualized share price gain of 7% over the same period. So one might argue that investor sentiment towards the stock hss not changed much over time. Arguably the share price is reflecting the earnings per share.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

Dive deeper into Bloober Team's key metrics by checking this interactive graph of Bloober Team's earnings, revenue and cash flow.

A Different Perspective

Bloober Team provided a TSR of 2.4% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 36% per year for five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Bloober Team better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Bloober Team you should be aware of, and 1 of them is a bit concerning.

Of course Bloober Team may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.