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Investors Who Bought Biglari Holdings (NYSE:BH.A) Shares A Year Ago Are Now Up 124%

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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Biglari Holdings Inc. (NYSE:BH.A) share price has soared 124% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 26% gain in the last three months. Biglari Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for Biglari Holdings

Given that Biglari 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Biglari Holdings actually shrunk its revenue over the last year, with a reduction of 35%. We're a little surprised to see the share price pop 124% 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.

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

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Biglari Holdings shareholders should be happy with the total gain of 124% over the last twelve months. And the share price momentum remains respectable, with a gain of 26% in the last three months. This suggests the company is continuing to win over new investors. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Biglari Holdings , and understanding them should be part of your investment process.

We will like Biglari Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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 (at) simplywallst.com.