Queen’s Road Capital Investment (TSE:QRC) shareholder returns have been fantastic, gaining 503% in 5 years

Buying stock in the best companies can create significant wealth for you and your family. And we’ve seen some really amazing gains over the years. You do not believe it ? Then look at the Queen’s Road Capital Investment Ltd. (TSE:QRC) share price. This is 492% higher than five years ago. It just shows the value creation some companies can achieve. And last week, the stock price jumped 15%.

Last week proved lucrative for investors at Queen’s Road Capital Investment, so let’s see if fundamentals have driven the company’s five-year performance.

Check out our latest analysis for Queen’s Road Capital Investment

Given that Queen’s Road Capital Investment has posted a loss over the past twelve months, we think the market is likely more focused on earnings and revenue growth, at least for now. Generally speaking, companies without profits should increase their revenue every year, and at a good pace. Indeed, rapid revenue growth can be easily extrapolated to predict profits, often of considerable size.

Over the past half-decade, Queen’s Road Capital Investment can boast of growing its revenue at a rate of 73% per annum. Even compared to other revenue-oriented companies, this is a good result. Fortunately, the market did not miss this and drove the stock price up 43% per year during this period. Despite the strong run, top performers like Queen’s Road Capital Investment have been known to win for decades. At first glance, this looks like a good opportunity, although we note that the sentiment already seems very positive.

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

TSX: QRC Earnings and Revenue Growth August 30, 2022

We appreciate the fact that insiders have been buying stocks over the past twelve months. Even so, future earnings will be far more important to whether current shareholders are making money. Dive deeper into earnings with this interactive chart of earnings, revenue and cash flow from Queen’s Road Capital Investment.

What about dividends?

It is important to consider the total shareholder return, as well as the stock price return, for a given stock. TSR is a calculation of return that takes into account the value of cash dividends (assuming any dividends received have been reinvested) and the calculated value of all discounted capital raisings and spinoffs. It can be said that the TSR gives a more complete picture of the return generated by a stock. We note that for Queen’s Road Capital Investment, the TSR over the past 5 years was 503%, which is better than the stock price return mentioned above. The dividends paid by the company thus inflated the total return to shareholders.

A different perspective

It is good to see that Queen’s Road Capital Investment has rewarded shareholders with a total shareholder return of 9.6% over the past twelve months. This includes the dividend. That said, the five-year TSR of 43% per year is even better. Potential buyers might understandably feel like they’ve missed the opportunity, but it’s always possible that business is still going strong. It is always interesting to follow the evolution of the share price over the long term. But to better understand Queen’s Road Capital Investment, we need to consider many other factors. For example, we found 2 warning signs for Queen’s Road Capital Investment which you should be aware of before investing here.

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on CA exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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