The Crossword Cybersecurity (LON:CCS) Share Price Is Up 146% And Shareholders Are Boasting About It

Simply Wall St

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. For instance the Crossword Cybersecurity Plc (LON:CCS) share price is 146% higher than it was three years ago. That sort of return is as solid as granite.

See our latest analysis for Crossword Cybersecurity

Crossword Cybersecurity 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 three years Crossword Cybersecurity has grown its revenue at 46% annually. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 35% compound over three years. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.

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

AIM:CCS Income Statement, December 31st 2019

This free interactive report on Crossword Cybersecurity's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Crossword Cybersecurity shareholders have gained 96% (in total) over the last year. That gain actually surpasses the 35% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Crossword Cybersecurity better, we need to consider many other factors. For example, we've discovered 6 warning signs for Crossword Cybersecurity (of which 2 are major) which any shareholder or potential investor should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

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