It's been a soft week for Optiscan Imaging Limited (ASX:OIL) shares, which are down 13%. But over the last year the share price has taken off like one of Elon Musk's rockets. In that time, shareholders have had the pleasure of a 875% boost to the share price. So the recent fall isn't enough to negate the good performance. While winners often keep winning, it can pay to be cautious after a strong rise.
We love happy stories like this one. The company should be really proud of that performance!
Because Optiscan Imaging made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Optiscan Imaging saw its revenue grow by 85%. That's a head and shoulders above most loss-making companies. But the share price has really rocketed in response gaining 875% as previously mentioned. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Optiscan Imaging stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Optiscan Imaging rewarded shareholders with a total shareholder return of 875% over the last year. That gain actually surpasses the 79% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Optiscan Imaging better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Optiscan Imaging you should be aware of.
But note: Optiscan Imaging 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 AU 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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