The Greenyard (EBR:GREEN) Share Price Has Gained 114%, So Why Not Pay It Some Attention?

Unless you borrow money to invest, the potential losses are limited. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Greenyard NV (EBR:GREEN). Its share price is already up an impressive 114% in the last twelve months. It's also good to see the share price up 22% over the last quarter. Unfortunately the longer term returns are not so good, with the stock falling 58% in the last three years.

Check out our latest analysis for Greenyard

Given that Greenyard 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Greenyard's revenue grew by 9.3%. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 114%. The business will need a lot more growth to justify that increase. It's quite likely that the market is considering other factors, not just revenue growth.

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 Greenyard stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Greenyard shareholders have received a total shareholder return of 114% over the last year. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. You could get a better understanding of Greenyard's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

But note: Greenyard 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 BE exchanges.

When trading Greenyard or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.