Calumet Specialty Products Partners (NASDAQ:CLMT) shareholder returns have been incredible, earning 339% in 5 years

For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the Calumet Specialty Products Partners, L.P. (NASDAQ:CLMT) share price. It's 339% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. Meanwhile the share price is 4.3% higher than it was a week ago.

Since it's been a strong week for Calumet Specialty Products Partners shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Calumet Specialty Products Partners

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During the last half decade, Calumet Specialty Products Partners became profitable. Sometimes, the start of profitability is a major inflection point that can signal fast earnings growth to come, which in turn justifies very strong share price gains.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of Calumet Specialty Products Partners' earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 25% in the last year, Calumet Specialty Products Partners shareholders lost 6.8%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 34%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand Calumet Specialty Products Partners better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Calumet Specialty Products Partners (including 2 which are significant) .

Calumet Specialty Products Partners is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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