The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But on the bright side, you can make far more than 100% on a really good stock. Long term Merit Medical Systems, Inc. (NASDAQ:MMSI) shareholders would be well aware of this, since the stock is up 180% in five years. And in the last month, the share price has gained 13%.

Since it's been a strong week for Merit Medical Systems shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Merit Medical Systems

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.

Over half a decade, Merit Medical Systems managed to grow its earnings per share at 43% a year. This EPS growth is higher than the 23% average annual increase in the share price. So one could conclude that the broader market has become more cautious towards the stock. Of course, with a P/E ratio of 52.86, the market remains optimistic.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how Merit Medical Systems has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at Merit Medical Systems' financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Merit Medical Systems has rewarded shareholders with a total shareholder return of 37% in the last twelve months. That's better than the annualised return of 23% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. If you would like to research Merit Medical Systems in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.