Introducing Tinybeans Group (ASX:TNY), The Stock That Zoomed 152% In The Last Year

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Tinybeans Group Limited (ASX:TNY). Its share price is already up an impressive 152% in the last twelve months. It's also up 10% in about a month. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report. And shareholders have also done well over the long term, with an increase of 125% in the last three years.

See our latest analysis for Tinybeans Group

Given that Tinybeans Group 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Tinybeans Group's revenue grew by 104%. That's well above most other pre-profit companies. Meanwhile, the market has paid attention, sending the share price soaring 152% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

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

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. It might be well worthwhile taking a look at our free report on Tinybeans Group's earnings, revenue and cash flow.

A Different Perspective

It's nice to see that Tinybeans Group shareholders have gained 152% (in total) over the last year. That gain actually surpasses the 31% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Tinybeans Group (of which 1 is a bit unpleasant!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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