Stock Analysis

International Entertainment (HKG:1009) delivers shareholders strong 39% CAGR over 3 years, surging 54% in the last week alone

Published
SEHK:1009

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For instance the International Entertainment Corporation (HKG:1009) share price is 169% higher than it was three years ago. How nice for those who held the stock! And in the last month, the share price has gained 56%.

Since it's been a strong week for International Entertainment shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for International Entertainment

International Entertainment 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 hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

International Entertainment's revenue trended up 48% each year over three years. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 39% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say International Entertainment is still worth investigating - successful businesses can often keep growing for long periods.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

SEHK:1009 Earnings and Revenue Growth May 14th 2024

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

It's good to see that International Entertainment has rewarded shareholders with a total shareholder return of 129% in the last twelve months. That's better than the annualised return of 5% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. To that end, you should be aware of the 1 warning sign we've spotted with International Entertainment .

We will like International Entertainment better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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.