Yahoo Finance BQE Water (CVE:BQE) delivers shareholders incredible 54% CAGR over 5 years, surging 16% in the last week alone
Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the BQE Water Inc. (CVE:BQE) share price. It's 772% higher than it was five years ago. 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 68% in about a quarter. It really delights us to see such great share price performance for investors.
Since it's been a strong week for BQE Water shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for BQE Water
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.
During the last half decade, BQE Water 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. Given that the company made a profit three years ago, but not five years ago, it is worth looking at the share price returns over the last three years, too. Indeed, the BQE Water share price has gained 100% in three years. During the same period, EPS grew by 41% each year. This EPS growth is higher than the 26% average annual increase in the share price over the same three years. Therefore, it seems the market has moderated its expectations for growth, somewhat.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It is of course excellent to see how BQE Water has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling BQE Water stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that BQE Water shareholders have received a total shareholder return of 87% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 54% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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 instance, we've identified 4 warning signs for BQE Water (1 is concerning) that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian 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.
