Would Shareholders Who Purchased Rici Healthcare Holdings' (HKG:1526) Stock Three Years Be Happy With The Share price Today?

Rici Healthcare Holdings Limited (HKG:1526) shareholders should be happy to see the share price up 13% in the last month. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 59%. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

See our latest analysis for Rici Healthcare Holdings

Rici Healthcare Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last three years, Rici Healthcare Holdings saw its revenue grow by 19% per year, compound. That's a fairly respectable growth rate. That contrasts with the weak share price, which has fallen 17% compounded, over three years. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.

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

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

A Different Perspective

Over the last year Rici Healthcare Holdings shareholders have received a TSR of 4.7%. It's always nice to make money but this return falls short of the market return which was about 12% for the year. On the bright side, that's certainly better than the yearly loss of about 17% endured over the last three years, implying that the company is doing better recently. It could well be that the business is stabilizing. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Rici Healthcare Holdings you should know about.

Of course Rici Healthcare 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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