Stock Analysis

The Universal Biosensors (ASX:UBI) Share Price Has Gained 95% And Shareholders Are Hoping For More

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It's been a soft week for Universal Biosensors, Inc. (ASX:UBI) shares, which are down 16%. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 95% in that time.

Check out our latest analysis for Universal Biosensors

Universal Biosensors isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.

In the last year Universal Biosensors saw its revenue shrink by 79%. Despite the lack of revenue growth, the stock has returned a solid 95% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

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

ASX:UBI Earnings and Revenue Growth December 16th 2020

Take a more thorough look at Universal Biosensors' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Universal Biosensors shareholders have received a total shareholder return of 95% over one year. That certainly beats the loss of about 3% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Universal Biosensors has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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