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Announcing: Respiri (ASX:RSH) Stock Soared An Exciting 307% In The Last Three Years

Simply Wall St
·3 min read

Respiri Limited (ASX:RSH) shareholders might be concerned after seeing the share price drop 26% in the last month. But over three years the performance has been really wonderful. Indeed, the share price is up a whopping 307% in that time. So the recent fall doesn't do much to dampen our respect for the business. The thing to consider is whether there is still too much elation around the company's prospects.

See our latest analysis for Respiri

Given that Respiri 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Respiri's revenue trended up 25% each year over three years. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 60% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like Respiri can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Respiri shareholders have received a total shareholder return of 97% over one year. That's better than the annualised return of 28% 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. It's always interesting to track share price performance over the longer term. But to understand Respiri better, we need to consider many other factors. Take risks, for example - Respiri has 7 warning signs (and 2 which are a bit concerning) we think 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@simplywallst.com.