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Does AGM Group Holdings's (NASDAQ:AGMH) Share Price Gain of 84% Match Its Business Performance?

Simply Wall St

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AGM Group Holdings Inc. (NASDAQ:AGMH) shareholders might be concerned after seeing the share price drop 28% in the last quarter. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. Looking at the full year, the company has easily bested an index fund by gaining 84%.

Check out our latest analysis for AGM Group Holdings

Given that AGM Group Holdings 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 AGM Group Holdings saw its revenue shrink by 11%. Despite the lack of revenue growth, the stock has returned a solid 84% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.

NasdaqCM:AGMH Income Statement, April 29th 2019

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of AGM Group Holdings's earnings, revenue and cash flow.

A Different Perspective

AGM Group Holdings boasts a total shareholder return of 84% for the last year. Unfortunately the share price is down 28% over the last quarter. Shorter term share price moves often don't signify much about the business itself. You could get a better understanding of AGM Group Holdings's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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

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.

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. Thank you for reading.