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Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Attica Bank S.A. (ATH:TATT) share price had more than doubled in just one year - up 245%. It's even up 7.3% in the last week. But this could be related to the buoyant market which is up about 3.1% in a week. Zooming out, the stock is actually down 53% in the last three years.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. 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.
Attica Bank went from making a loss to reporting a profit, in the last year.
The result looks like a strong improvement to us, so we're not surprised the market likes the growth. Generally speaking the profitability inflection point is a great time to research a company closely, lest you miss an opportunity to profit.
You can see how EPS has changed over time in the image below (click on the chart to see the exact values).
It is of course excellent to see how Attica Bank has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Attica Bank's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Attica Bank shareholders have received a total shareholder return of 245% over one year. That certainly beats the loss of about 54% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. Is Attica Bank cheap compared to other companies? These 3 valuation measures might help you decide.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GR exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.