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Did You Miss Blancco Technology Group's (LON:BLTG) Impressive 173% Share Price Gain?

Simply Wall St
·3 min read

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Blancco Technology Group plc (LON:BLTG) share price has soared 173% in the last three years. How nice for those who held the stock!

View our latest analysis for Blancco Technology Group

Given that Blancco Technology Group only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 3 years Blancco Technology Group saw its revenue grow at 9.2% per year. That's a very respectable growth rate. It's fair to say that the market has acknowledged the growth by pushing the share price up 40% per year. The business has made good progress on the top line, but the market is extrapolating the growth. Some investors like to buy in just after a company becomes profitable, since that can be a powerful inflexion point.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

It is of course excellent to see how Blancco Technology Group has grown profits over the years, but the future is more important for shareholders. This free interactive report on Blancco Technology Group's 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 Blancco Technology Group shareholders have received a total shareholder return of 47% over one year. That gain is better than the annual TSR over five years, which is 1.0%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Blancco Technology Group better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Blancco Technology Group you should be aware of.

But note: Blancco Technology Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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