Did Aquis Exchange's (LON:AQX) Share Price Deserve to Gain 35%?

If you want to compound wealth in the stock market, you can do so by buying an index fund. But if you pick the right individual stocks, you could make more than that. For example, the Aquis Exchange PLC (LON:AQX) share price is up 35% in the last year, clearly besting the market return of around 2.1% (not including dividends). That's a solid performance by our standards! We'll need to follow Aquis Exchange for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

View our latest analysis for Aquis Exchange

Aquis Exchange 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Aquis Exchange grew its revenue by 36% last year. We respect that sort of growth, no doubt. Buyers pushed the share price 35% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But it's crucial to check profitability and cash flow before forming a view on the future.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

Aquis Exchange shareholders should be happy with the total gain of 35% over the last twelve months. And the share price momentum remains respectable, with a gain of 24% in the last three months. This suggests the company is continuing to win over new investors. If you would like to research Aquis Exchange in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Of course Aquis Exchange may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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