Introducing Xeros Technology Group (LON:XSG), The Stock That Zoomed 254% 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 Xeros Technology Group plc (LON:XSG) share price has soared 254% in the last year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 30% over the last quarter. Zooming out, the stock is actually down 98% in the last three years.

See our latest analysis for Xeros Technology Group

Given that Xeros Technology Group 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. 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.

Xeros Technology Group actually shrunk its revenue over the last year, with a reduction of 61%. So we would not have expected the share price to rise 254%. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

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

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. You can see what analysts are predicting for Xeros Technology Group in this interactive graph of future profit estimates.

A Different Perspective

It's nice to see that Xeros Technology Group shareholders have received a total shareholder return of 254% over the last year. There's no doubt those recent returns are much better than the TSR loss of 15% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Xeros Technology Group better, we need to consider many other factors. Case in point: We've spotted 6 warning signs for Xeros Technology Group you should be aware of, and 1 of them is concerning.

Xeros Technology Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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