ArtGo Holdings (HKG:3313) shareholder returns have been strong, earning 124% in 1 year

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the ArtGo Holdings Limited (HKG:3313) share price has soared 124% in the last 1 year. Most would be very happy with that, especially in just one year! It's up an even more impressive 217% in about a month. We note that ArtGo Holdings reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report. Unfortunately the longer term returns are not so good, with the stock falling 52% in the last three years.

Since the stock has added HK$198m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for ArtGo Holdings

ArtGo Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year ArtGo Holdings saw its revenue shrink by 20%. We're a little surprised to see the share price pop 124% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of ArtGo Holdings' earnings, revenue and cash flow.

A Different Perspective

It's good to see that ArtGo Holdings has rewarded shareholders with a total shareholder return of 124% in the last twelve months. That certainly beats the loss of about 15% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. Even so, be aware that ArtGo Holdings is showing 4 warning signs in our investment analysis , and 3 of those are a bit concerning...

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.