If You Had Bought EQTEC (LON:EQT) Stock A Year Ago, You Could Pocket A 870% Gain Today

EQTEC plc (LON:EQT) shareholders have seen the share price descend 12% over the month. But that isn't a problem when you consider how the share price has soared over the last year. In that time, shareholders have had the pleasure of a 870% boost to the share price. So the recent fall isn't enough to negate the good performance. Only time will tell if there is still too much optimism currently reflected in the share price.

We love happy stories like this one. The company should be really proud of that performance!

Check out our latest analysis for EQTEC

Because EQTEC 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

EQTEC actually shrunk its revenue over the last year, with a reduction of 72%. This is in stark contrast to the splendorous stock price, which has rocketed 870% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. While this gain looks like speculative buying to us, sometimes speculation pays off.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free report showing analyst forecasts should help you form a view on EQTEC

A Different Perspective

We're pleased to report that EQTEC rewarded shareholders with a total shareholder return of 870% over the last year. That gain actually surpasses the 8% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that EQTEC is showing 4 warning signs in our investment analysis , and 2 of those don't sit too well with us...

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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