We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. Not every pick can be a winner, but when you pick the right stock, you can win big. One such superstar is BCI Minerals Limited (ASX:BCI), which saw its share price soar 318% in three years. It's also good to see the share price up 80% over the last quarter.

See our latest analysis for BCI Minerals

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.

BCI Minerals became profitable within the last three years. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

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

We know that BCI Minerals has improved its bottom line over the last three years, but what does the future have in store? Take a more thorough look at BCI Minerals' financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We've already covered BCI Minerals' share price action, but we should also mention its total shareholder return (TSR). 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. Dividends have been really beneficial for BCI Minerals shareholders, and that cash payout contributed to why its TSR of 326%, over the last 3 years, is better than the share price return.

A Different Perspective

It's good to see that BCI Minerals has rewarded shareholders with a total shareholder return of 214% in the last twelve months. That gain is better than the annual TSR over five years, which is 35%. Therefore it seems like sentiment around the company has been positive lately. 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 BCI Minerals better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for BCI Minerals (of which 3 are significant!) you should know about.

If you are like me, then you will not want to miss this free list of growing companies 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 AU exchanges.

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. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.