Does Hathway Cable and Datacom's (NSE:HATHWAY) Share Price Gain of 99% Match Its Business Performance?

Hathway Cable and Datacom Limited (NSE:HATHWAY) shareholders might be concerned after seeing the share price drop 22% in the last week. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 99% in that time.

View our latest analysis for Hathway Cable and Datacom

There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Hathway Cable and Datacom went from making a loss to reporting a profit, in the last year.

When a company is just on the edge of profitability it can be well worth considering other metrics in order to more precisely gauge growth (and therefore understand share price movements).

We think that the revenue growth of 8.9% could have some investors interested. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

It's good to see that Hathway Cable and Datacom has rewarded shareholders with a total shareholder return of 99% in the last twelve months. Notably the five-year annualised TSR loss of 4.9% 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 Hathway Cable and Datacom better, we need to consider many other factors. For example, we've discovered 2 warning signs for Hathway Cable and Datacom (1 is significant!) that you should be aware of before investing here.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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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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