Despite shrinking by UK£99m in the past week, Aston Martin Lagonda Global Holdings (LON:AML) shareholders are still up 150% over 1 year

It might be of some concern to shareholders to see the Aston Martin Lagonda Global Holdings plc (LON:AML) share price down 29% in the last month. But that doesn't detract from the splendid returns of the last year. Indeed, the share price is up an impressive 150% in that time. So we think most shareholders won't be too upset about the recent fall. The real question is whether the business is trending in the right direction.

Since the long term performance has been good but there's been a recent pullback of 5.0%, let's check if the fundamentals match the share price.

View our latest analysis for Aston Martin Lagonda Global Holdings

Aston Martin Lagonda Global Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Aston Martin Lagonda Global Holdings' revenue grew by 33%. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 150% as mentioned above. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Aston Martin Lagonda Global Holdings stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Aston Martin Lagonda Global Holdings shareholders have received a total shareholder return of 150% over the last year. That certainly beats the loss of about 14% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Aston Martin Lagonda Global Holdings better, we need to consider many other factors. Take risks, for example - Aston Martin Lagonda Global Holdings has 2 warning signs we think you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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