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The Azure Power Global (NYSE:AZRE) Share Price Is Up 39% And Shareholders Are Holding On

Simply Wall St

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Azure Power Global Limited (NYSE:AZRE) share price is up 39% in the last year, clearly besting the market return of around 24% (not including dividends). So that should have shareholders smiling. Zooming out, the stock is actually down 27% in the last three years.

See our latest analysis for Azure Power Global

Azure Power Global wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Azure Power Global's revenue grew by 33%. We respect that sort of growth, no doubt. While the share price performed well, gaining 39% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

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

NYSE:AZRE Income Statement, January 12th 2020

Take a more thorough look at Azure Power Global's financial health with this free report on its balance sheet.

A Different Perspective

Pleasingly, Azure Power Global's total shareholder return last year was 39%. That certainly beats the loss of about 10.0% per year over three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. You could get a better understanding of Azure Power Global's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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 US 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.