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Is Aemetis' (NASDAQ:AMTX) Share Price Gain Of 191% Well Earned?

Simply Wall St
·3 mins read

When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example Aemetis, Inc. (NASDAQ:AMTX). Its share price is already up an impressive 191% in the last twelve months. Better yet, the share price has gained 225% in the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. And shareholders have also done well over the long term, with an increase of 129% in the last three years.

View our latest analysis for Aemetis

Given that Aemetis didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Aemetis saw its revenue grow by 12%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 191%. The business will need a lot more growth to justify that increase. We're not so sure that revenue growth is driving the market optimism about the stock.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

This free interactive report on Aemetis' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Aemetis shareholders have received a total shareholder return of 191% over one year. That certainly beats the loss of about 1.2% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Aemetis better, we need to consider many other factors. Even so, be aware that Aemetis is showing 4 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

Of course Aemetis 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 US 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@simplywallst.com.