Did You Miss Outokumpu Oyj's (HEL:OUT1V) Impressive 118% Share Price Gain?

By
Simply Wall St
Published
April 18, 2021
HLSE:OUT1V

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Outokumpu Oyj (HEL:OUT1V) share price had more than doubled in just one year - up 118%. Also pleasing for shareholders was the 50% gain in the last three months. On the other hand, longer term shareholders have had a tougher run, with the stock falling 12% in three years.

View our latest analysis for Outokumpu Oyj

Because Outokumpu Oyj 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 expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Outokumpu Oyj saw its revenue shrink by 12%. We're a little surprised to see the share price pop 118% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
HLSE:OUT1V Earnings and Revenue Growth April 19th 2021

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. If you are thinking of buying or selling Outokumpu Oyj stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

We're pleased to report that Outokumpu Oyj shareholders have received a total shareholder return of 118% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 7% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Even so, be aware that Outokumpu Oyj is showing 2 warning signs in our investment analysis , you should know about...

Of course Outokumpu Oyj may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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