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Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held CyanConnode Holdings plc (LON:CYAN) shares for the last five years, while they gained 640%. And this is just one example of the epic gains achieved by some long term investors. It's also good to see the share price up 45% over the last quarter. It really delights us to see such great share price performance for investors.
So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.
CyanConnode Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 5 years CyanConnode Holdings saw its revenue grow at 33% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 49%(per year) over the same period. It's never too late to start following a top notch stock like CyanConnode Holdings, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
We're pleased to report that CyanConnode Holdings shareholders have received a total shareholder return of 60% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 49% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand CyanConnode Holdings better, we need to consider many other factors. For example, we've discovered 3 warning signs for CyanConnode Holdings that you should be aware of before investing here.