Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Diurnal Group plc (LON:DNL) share price has soared 134% 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 17% in about a quarter. On the other hand, longer term shareholders have had a tougher run, with the stock falling 63% in three years.
Because Diurnal Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.
Diurnal Group grew its revenue by 214% last year. That's well above most other pre-profit companies. And the share price has responded, gaining 134% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Diurnal Group's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Diurnal Group shareholders have received a total shareholder return of 134% over one year. That certainly beats the loss of about 9% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Diurnal Group better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Diurnal Group 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 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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