The Omnibridge Holdings (HKG:8462) Share Price Is Up 30% And Shareholders Are Holding On

Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Omnibridge Holdings Limited (HKG:8462) share price is up 30% in the last year, clearly besting the market return of around 5.2% (not including dividends). That's a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 24% lower than it was three years ago.

See our latest analysis for Omnibridge Holdings

Given that Omnibridge Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Omnibridge Holdings saw its revenue grow by 22%. That's a fairly respectable growth rate. Buyers pushed the share price 30% 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.

The graphic below depicts how earnings and revenue have changed over time (unveil 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

We're pleased to report that Omnibridge Holdings rewarded shareholders with a total shareholder return of 30% over the last year. That certainly beats the loss of about 8% per year over three years. It could well be that the business has turned around -- or else regained the confidence of investors. 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. For instance, we've identified 3 warning signs for Omnibridge Holdings (1 is concerning) that you should be aware of.

Of course Omnibridge Holdings 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 HK 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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