Yahoo Finance Investors in Imaflex (CVE:IFX) have made a stellar return of 145% over the past 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%. To wit, the Imaflex Inc. (CVE:IFX) share price has flown 145% in the last three years. That sort of return is as solid as granite. In more good news, the share price has risen 13% in thirty days. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
View our latest analysis for Imaflex
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. 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.
Imaflex was able to grow its EPS at 71% per year over three years, sending the share price higher. This EPS growth is higher than the 35% average annual increase in the share price. So it seems investors have become more cautious about the company, over time. This cautious sentiment is reflected in its (fairly low) P/E ratio of 7.04.
The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).
We know that Imaflex has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Imaflex's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Imaflex shareholders are down 2.9% over twelve months, which isn't far from the market return of -2.9%. Longer term investors wouldn't be so upset, since they would have made 3%, each year, over five years. If the stock price has been impacted by changing sentiment, rather than deteriorating business conditions, it could spell opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Imaflex you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
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