The A2 Milk share price (NZSE: ATM) has risen by 1401% and stockholders are euphoric – Simply Wall St News

Long-term investing can change lives when you buy and own real businesses.
Although not all stocks perform well, when investors win, they can win big.
For example, the A2 Milk Company Limited The share price (NZSE: ATM) has risen by 1401% in the last five years, a good performance for long-term holders.
And this is just one example of the epic gains made by some long-term investors.
It is also good to see the share price up 31% compared to the last quarter.

Anyone who has held for this rewarding round would probably be eager to talk about it.

See our latest badysis for a2 milk

While markets are a powerful pricing mechanism, stock prices reflect investor sentiment, not just underlying trading performance.
An imperfect, but reasonable, way to evaluate the evolution of opinion on a company is to compare earnings per share (EPS) with share price.

Over the last five years of stock price growth, a2 Milk has recorded earnings growth per share (EPS) of 118% per annum.
The growth of EPS is more impressive than the annual gain of 72% of the share price over the same period.
It therefore seems that the market has become relatively pessimistic about society.

You can see below the evolution of EPS over time (find out the exact values ​​by clicking on the image).

We know that A2 Milk has improved its bottom line in the last three years, but what does the future hold?
Take a closer look at the financial health of a2 Milk with this free report on its balance sheet.

A different perspective

A2 Milk shareholders are up 0.6% year-on-year.
But this return is far from the market.
This is probably a good sign that the company is posting even better results over the long term, having provided shareholders with an annual TSR of 72% over five years.
Maybe the stock price is just catching on as the company implements its growth strategy.
If you would like to further research on a2 Milk, you can find out whether insiders have bought or sold shares in the company.

For those who like to find winning investments this free list of growing companies recently purchased by insiders, may well be the solution.

Please note that the market returns quoted in this article reflect the weighted average returns of the equity markets currently traded on the New Zealand Stock Exchanges.

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.