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Eagle Eye Solutions Group's (LON:EYE) investors will be pleased with their solid 193% return over the last three years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Eagle Eye Solutions Group plc (LON:EYE) share price has soared 193% in the last three years. That sort of return is as solid as granite. Also pleasing for shareholders was the 20% gain in the last three months.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

Check out our latest analysis for Eagle Eye Solutions Group

Given that Eagle Eye Solutions Group only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

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In the last 3 years Eagle Eye Solutions Group saw its revenue grow at 17% per year. That's a very respectable growth rate. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 43% per year over three years. The business has made good progress on the top line, but the market is extrapolating the growth. It would be worth thinking about when profits will flow, since that milestone will attract more attention.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

It is of course excellent to see how Eagle Eye Solutions Group has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Eagle Eye Solutions Group's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Eagle Eye Solutions Group shareholders have received a total shareholder return of 3.3% over the last year. However, the TSR over five years, coming in at 16% per year, is even more impressive. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. If you would like to research Eagle Eye Solutions Group in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

We will like Eagle Eye Solutions Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.