Stock Analysis

Did You Miss Rogers' (NYSE:ROG) Impressive 265% Share Price Gain?

NYSE:ROG
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But on the bright side, you can make far more than 100% on a really good stock. Long term Rogers Corporation (NYSE:ROG) shareholders would be well aware of this, since the stock is up 265% in five years. On top of that, the share price is up 57% in about a quarter.

View our latest analysis for Rogers

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.

Rogers' earnings per share are down 34% per year, despite strong share price performance over five years.

Essentially, it doesn't seem likely that investors are focused on EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

In contrast revenue growth of 7.4% per year is probably viewed as evidence that Rogers is growing, a real positive. In that case, the company may be sacrificing current earnings per share to drive growth.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
NYSE:ROG Earnings and Revenue Growth January 18th 2021

This free interactive report on Rogers' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Rogers has rewarded shareholders with a total shareholder return of 26% in the last twelve months. However, the TSR over five years, coming in at 30% per year, is even more impressive. 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 4 warning signs for Rogers that you should be aware of before investing here.

If you are like me, then you will not want to miss this free list of growing companies that insiders are 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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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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