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Is Hellenic Company for Telecommunications and Telematic Applications's (ATH:FORTH) Share Price Gain Of 151% Well Earned?

Simply Wall St

Hellenic Company for Telecommunications and Telematic Applications S.A. (ATH:FORTH) shareholders have seen the share price descend 21% over the month. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 151% in that time. So we think most shareholders won't be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.

See our latest analysis for Hellenic Company for Telecommunications and Telematic Applications

Hellenic Company for Telecommunications and Telematic Applications isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.

Hellenic Company for Telecommunications and Telematic Applications actually shrunk its revenue over the last year, with a reduction of 4.2%. We're a little surprised to see the share price pop 151% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

ATSE:FORTH Income Statement, September 18th 2019

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

It's good to see that Hellenic Company for Telecommunications and Telematic Applications has rewarded shareholders with a total shareholder return of 151% in the last twelve months. Notably the five-year annualised TSR loss of 28% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

But note: Hellenic Company for Telecommunications and Telematic Applications 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 GR 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.