Yahoo Finance Augean (LON:AUG) Shareholders Have Enjoyed A Whopping 737% Share Price Gain
We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. One such superstar is Augean plc (LON:AUG), which saw its share price soar 737% in three years. It's also good to see the share price up 10% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 4.2% in 90 days).
We love happy stories like this one. The company should be really proud of that performance!
Check out our latest analysis for Augean
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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).
During three years of share price growth, Augean moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
We know that Augean has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Augean stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's good to see that Augean has rewarded shareholders with a total shareholder return of 11% in the last twelve months. However, the TSR over five years, coming in at 39% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand Augean better, we need to consider many other factors. For instance, we've identified 1 warning sign for Augean that you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
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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