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We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. You won't get it right every time, but when you do, the returns can be truly splendid. Take, for example, the Zynex, Inc. (NASDAQ:ZYXI) share price, which skyrocketed 3251% over three years. Also pleasing for shareholders was the 79% gain in the last three months.
We love happy stories like this one. The company should be really proud of that performance!
Check out our latest analysis for Zynex
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
During three years of share price growth, Zynex moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Zynex has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Zynex stock, you should check out this FREE detailed report on its balance sheet.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Zynex's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Zynex hasn't been paying dividends, but its TSR of 3342% exceeds its share price return of 3251%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
A Different Perspective
We're pleased to report that Zynex shareholders have received a total shareholder return of 159% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 116% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on Zynex it might be wise to click here to see if insiders have been buying or selling shares.