If You Had Bought eEnergy Group (LON:EAAS) Shares A Year Ago You'd Have Earned 117% Returns

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the eEnergy Group plc (LON:EAAS) share price has soared 117% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 75% in about a quarter. eEnergy Group hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for eEnergy Group

eEnergy Group wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, eEnergy Group's revenue grew by 22%. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 117% as mentioned above. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

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

If you are thinking of buying or selling eEnergy Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that eEnergy Group shareholders have gained 117% over the last year. And the share price momentum remains respectable, with a gain of 75% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Case in point: We've spotted 3 warning signs for eEnergy Group you should be aware of, and 1 of them shouldn't be ignored.

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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