Enter Air Sp. z o.o (WSE:ENT) stock performs better than its underlying earnings growth over last five years

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%. For instance, the price of Enter Air Sp. z o.o. (WSE:ENT) stock is up an impressive 151% over the last five years. It's also good to see the share price up 37% over the last quarter.

Since it's been a strong week for Enter Air Sp. z o.o shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Enter Air Sp. z o.o

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. 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 last half decade, Enter Air Sp. z o.o became profitable. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

Dive deeper into Enter Air Sp. z o.o's key metrics by checking this interactive graph of Enter Air Sp. z o.o's earnings, revenue and cash flow.

What About The Total Shareholder Return (TSR)?

We've already covered Enter Air Sp. z o.o's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Enter Air Sp. z o.o's TSR of 156% over the last 5 years is better than the share price return.

A Different Perspective

It's nice to see that Enter Air Sp. z o.o shareholders have received a total shareholder return of 81% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 21% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Enter Air Sp. z o.o better, we need to consider many other factors. Even so, be aware that Enter Air Sp. z o.o is showing 1 warning sign in our investment analysis , you should know about...

But note: Enter Air Sp. z o.o 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.