Can You Imagine How Jubilant K3 Business Technology Group's (LON:KBT) Shareholders Feel About Its 158% Share Price Gain?
When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the K3 Business Technology Group plc (LON:KBT) share price has soared 158% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 45% in about a quarter. However, the stock hasn't done so well in the longer term, with the stock only up 13% in three years.
View our latest analysis for K3 Business Technology Group
Given that K3 Business Technology Group 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
K3 Business Technology Group actually shrunk its revenue over the last year, with a reduction of 3.1%. We're a little surprised to see the share price pop 158% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
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 K3 Business Technology Group shareholders have received a total shareholder return of 158% over one year. Notably the five-year annualised TSR loss of 8% 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. It's always interesting to track share price performance over the longer term. But to understand K3 Business Technology Group better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for K3 Business Technology Group you should be aware of, and 1 of them is potentially serious.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.
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