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Investors Who Bought Codemasters Group Holdings (LON:CDM) Shares A Year Ago Are Now Up 31%

The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. For example, the Codemasters Group Holdings Plc (LON:CDM) share price is up 31% in the last year, clearly besting than the market return of around 0.03% (not including dividends). So that should have shareholders smiling. We'll need to follow Codemasters Group Holdings for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

See our latest analysis for Codemasters Group Holdings

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

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During the last year Codemasters Group Holdings grew its earnings per share, moving from a loss to a profit. When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 12% could have some investors interested. Many businesses do go through a faze where they have to forgo some profits to drive business development, and sometimes its for the best.

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

AIM:CDM Income Statement, September 13th 2019
AIM:CDM Income Statement, September 13th 2019

We know that Codemasters Group Holdings has improved its bottom line over the last three years, but what does the future have in store? It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Codemasters Group Holdings boasts a total shareholder return of 31% for the last year. We regret to report that the share price is down 9.9% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. Before deciding if you like the current share price, check how Codemasters Group Holdings scores on these 3 valuation metrics.

Of course Codemasters Group Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.