The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the Nixu Oyj (HEL:NIXU) share price is 120% higher than it was three years ago. How nice for those who held the stock! In the last week shares have slid back 4.3%.
Given that Nixu Oyj 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.
Nixu Oyj’s revenue trended up 30% each year over three years. That’s well above most pre-profit companies. Along the way, the share price gained 30% per year, a solid pop by our standards. This suggests the market has recognized the progress the business has made, at least to a significant degree. That’s not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
This free interactive report on Nixu Oyj’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
The last twelve months weren’t great for Nixu Oyj shares, which performed worse than the market, costing holders 14%. The market shed around 2.1%, no doubt weighing on the stock price. Fortunately the longer term story is brighter, with total returns averaging about 30% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. You could get a better understanding of Nixu Oyj’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
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 FI 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 email@example.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.