Shareholders have faith in loss-making WISeKey International Holding (VTX:WIHN) as stock climbs 12% in past week, taking one-year gain to 309%

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, WISeKey International Holding AG (VTX:WIHN) has generated a beautiful 309% return in just a single year. Shareholders are also celebrating an even better 315% rise, over the last three months. On the other hand, longer term shareholders have had a tougher run, with the stock falling 52% in three years.

Since it's been a strong week for WISeKey International Holding shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for WISeKey International Holding

Because WISeKey International Holding 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 desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year WISeKey International Holding saw its revenue shrink by 25%. So it's very confusing to see that the share price gained a whopping 309%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at WISeKey International Holding's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that WISeKey International Holding shareholders have received a total shareholder return of 309% over one year. That certainly beats the loss of about 11% 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. It's always interesting to track share price performance over the longer term. But to understand WISeKey International Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for WISeKey International Holding you should be aware of, and 1 of them makes us a bit uncomfortable.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swiss exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.