Can You Imagine How Jubilant InfraCom Group's (NGM:INFRA) Shareholders Feel About Its 107% Share Price Gain?

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the InfraCom Group AB (publ) (NGM:INFRA) share price had more than doubled in just one year - up 107%. It's also up 25% in about a month. Also impressive, the stock is up 71% over three years, making long term shareholders happy, too.

View our latest analysis for InfraCom Group

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

InfraCom Group was able to grow EPS by 40% in the last twelve months. The share price gain of 107% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

It's nice to see that InfraCom Group shareholders have gained 107% (in total) over the last year. That's better than the annualized TSR of 20% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for InfraCom Group that you should be aware of.

Of course InfraCom Group 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 SE 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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