Aspen Aerogels (NYSE:ASPN) shareholder returns have been massive, earning 375% in 5 years

We think all investors should try to buy and hold high quality multi-year winners. While not every stock performs well, when investors win, they can win big. To wit, the Aspen Aerogels, Inc. (NYSE:ASPN) share price has soared 375% over five years. This just goes to show the value creation that some businesses can achieve. And in the last week the share price has popped 19%.

Since it's been a strong week for Aspen Aerogels shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Aspen Aerogels

Given that Aspen Aerogels only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

For the last half decade, Aspen Aerogels can boast revenue growth at a rate of 20% per year. Even measured against other revenue-focussed companies, that's a good result. Fortunately, the market has not missed this, and has pushed the share price up by 37% per year in that time. It's never too late to start following a top notch stock like Aspen Aerogels, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We know that Aspen Aerogels has improved its bottom line lately, but what does the future have in store? This free report showing analyst forecasts should help you form a view on Aspen Aerogels

A Different Perspective

It's good to see that Aspen Aerogels has rewarded shareholders with a total shareholder return of 352% in the last twelve months. That gain is better than the annual TSR over five years, which is 37%. Therefore it seems like sentiment around the company has been positive lately. 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 Aspen Aerogels better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Aspen Aerogels you should be aware of, and 1 of them is a bit unpleasant.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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