Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS) jumps 4.7% this week, though earnings growth is still tracking behind five-year shareholder returns

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 example, the Qatar Gas Transport Company Limited (Nakilat) (QPSC) (DSM:QGTS) share price has soared 109% in the last half decade. Most would be very happy with that. Also pleasing for shareholders was the 30% gain in the last three months.

Since it's been a strong week for Qatar Gas Transport Company Limited (Nakilat) (QPSC) shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Qatar Gas Transport Company Limited (Nakilat) (QPSC)

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.

Over half a decade, Qatar Gas Transport Company Limited (Nakilat) (QPSC) managed to grow its earnings per share at 12% a year. This EPS growth is lower than the 16% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth.

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 Qatar Gas Transport Company Limited (Nakilat) (QPSC)'s earnings, revenue and cash flow.

What About Dividends?

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Qatar Gas Transport Company Limited (Nakilat) (QPSC), it has a TSR of 151% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

We're pleased to report that Qatar Gas Transport Company Limited (Nakilat) (QPSC) shareholders have received a total shareholder return of 34% over one year. And that does include the dividend. That's better than the annualised return of 20% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Qatar Gas Transport Company Limited (Nakilat) (QPSC) better, we need to consider many other factors. For instance, we've identified 2 warning signs for Qatar Gas Transport Company Limited (Nakilat) (QPSC) that you should be aware of.

We will like Qatar Gas Transport Company Limited (Nakilat) (QPSC) better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.