Stock Analysis

If You Had Bought SSH Communications Security Oyj (HEL:SSH1V) Stock A Year Ago, You Could Pocket A 174% Gain Today

HLSE:SSH1V
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SSH Communications Security Oyj (HEL:SSH1V) shareholders might be concerned after seeing the share price drop 10% in the last month. But that doesn't change the fact that the returns over the last year have been very strong. Indeed, the share price is up an impressive 174% in that time. So it may be that the share price is simply cooling off after a strong rise. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Check out our latest analysis for SSH Communications Security Oyj

Given that SSH Communications Security Oyj 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.

SSH Communications Security Oyj actually shrunk its revenue over the last year, with a reduction of 22%. We're a little surprised to see the share price pop 174% 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.

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

earnings-and-revenue-growth
HLSE:SSH1V Earnings and Revenue Growth March 11th 2021

Take a more thorough look at SSH Communications Security Oyj's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that SSH Communications Security Oyj shareholders have received a total shareholder return of 174% over the last year. That certainly beats the loss of about 5% 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 SSH Communications Security Oyj better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for SSH Communications Security Oyj you should be aware of.

But note: SSH Communications Security Oyj 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 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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