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Shareholders Are Thrilled That The GDI Integrated Facility Services (TSE:GDI) Share Price Increased 125%

Simply Wall St

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For instance the GDI Integrated Facility Services Inc. (TSE:GDI) share price is 125% higher than it was three years ago. How nice for those who held the stock! Also pleasing for shareholders was the 25% gain in the last three months.

See our latest analysis for GDI Integrated Facility Services

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Over the last three years, GDI Integrated Facility Services failed to grow earnings per share, which fell 30% (annualized).

So we doubt that the market is looking to EPS for its main judge of the company's value. Therefore, we think it's worth considering other metrics as well.

It may well be that GDI Integrated Facility Services revenue growth rate of 13% over three years has convinced shareholders to believe in a brighter future. If the company is being managed for the long term good, today's shareholders might be right to hold on.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

TSX:GDI Income Statement, December 10th 2019

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that GDI Integrated Facility Services shareholders have gained 93% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 31%. The improving returns to shareholders suggests the stock is becoming more popular with time. Is GDI Integrated Facility Services cheap compared to other companies? These 3 valuation measures might help you decide.

Of course GDI Integrated Facility Services may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.

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. Thank you for reading.