Introducing Nurminen Logistics Oyj (HEL:NLG1V), The Stock That Zoomed 150% In The Last Year

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Nurminen Logistics Oyj (HEL:NLG1V) share price has soared 150% return in just a single year. Also pleasing for shareholders was the 76% gain in the last three months. However, the longer term returns haven't been so impressive, with the stock up just 22% in the last three years.

See our latest analysis for Nurminen Logistics Oyj

Given that Nurminen Logistics 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.

Nurminen Logistics Oyj actually shrunk its revenue over the last year, with a reduction of 1.9%. So we would not have expected the share price to rise 150%. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. 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).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Nurminen Logistics Oyj

A Different Perspective

It's nice to see that Nurminen Logistics Oyj shareholders have received a total shareholder return of 150% over the last year. That gain is better than the annual TSR over five years, which is 5%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Nurminen Logistics Oyj better, we need to consider many other factors. Take risks, for example - Nurminen Logistics Oyj has 6 warning signs (and 2 which are potentially serious) we think you should know about.

But note: Nurminen Logistics 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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