Stock Analysis

Introducing EVI Industries (NYSEMKT:EVI), The Stock That Soared 875% In The Last Five Years

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NYSEAM:EVI
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Buying shares in the best businesses can build meaningful wealth for you and your family. And highest quality companies can see their share prices grow by huge amounts. For example, the EVI Industries, Inc. (NYSEMKT:EVI) share price is up a whopping 875% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 40% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

Anyone who held for that rewarding ride would probably be keen to talk about it.

View our latest analysis for EVI Industries

We don't think that EVI Industries' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 5 years EVI Industries saw its revenue grow at 38% per year. Even measured against other revenue-focussed companies, that's a good result. Arguably, this is well and truly reflected in the strong share price gain of 58%(per year) over the same period. Despite the strong run, top performers like EVI Industries have been known to go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
AMEX:EVI Earnings and Revenue Growth December 4th 2020

Take a more thorough look at EVI Industries' financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between EVI Industries' total shareholder return (TSR) and its share price return. 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. EVI Industries' TSR of 887% for the 5 years exceeded its share price return, because it has paid dividends.

A Different Perspective

EVI Industries' TSR for the year was broadly in line with the market average, at 26%. It has to be noted that the recent return falls short of the 58% shareholders have gained each year, over half a decade. More recently, the share price growth has slowed. But it has to be said the overall picture is one of good long term and short term performance. Arguably that makes EVI Industries a stock worth watching. 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 example, we've discovered 3 warning signs for EVI Industries that you should be aware of before investing here.

We will like EVI Industries 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 US exchanges.

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