We think all investors should try to buy and hold high quality multi-year winners. And highest quality companies can see their share prices grow by huge amounts. Don't believe it? Then look at the IQGeo Group plc (LON:IQG) share price. It's 358% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. We note the stock price is up 4.0% in the last seven days.
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 IQGeo Group
IQGeo Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
For the last half decade, IQGeo Group can boast revenue growth at a rate of 14% per year. That's a pretty good long term growth rate. Arguably it's more than reflected in the very strong share price gain of 36% a year over a half a decade. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. You can see what analysts are predicting for IQGeo Group in this interactive graph of future profit estimates.
A Different Perspective
It's good to see that IQGeo Group has rewarded shareholders with a total shareholder return of 57% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 36% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 1 warning sign for IQGeo Group that you should be aware of before investing here.