The Tinybeans Group (ASX:TNY) Share Price Has Gained 128%, So Why Not Pay It Some Attention?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. To wit, the Tinybeans Group Limited (ASX:TNY) share price has flown 128% in the last three years. That sort of return is as solid as granite. It's also good to see the share price up 26% over the last quarter. But this could be related to the strong market, which is up 13% in the last three months.

View 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Tinybeans Group's revenue trended up 56% each year over three years. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 32% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. Nonetheless, we'd say Tinybeans Group is still worth investigating - successful businesses can often keep growing for long periods.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on Tinybeans Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Over the last year, Tinybeans Group shareholders took a loss of 39%. In contrast the market gained about 3.2%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Investors are up over three years, booking 32% per year, much better than the more recent returns. Sometimes when a good quality long term winner has a weak period, it's turns out to be an opportunity, but you really need to be sure that the quality is there. It's always interesting to track share price performance over the longer term. But to understand Tinybeans Group better, we need to consider many other factors. To that end, you should learn about the 6 warning signs we've spotted with Tinybeans Group (including 1 which is is concerning) .

Tinybeans Group is not the only stock that insiders are buying. 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 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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