It might be of some concern to shareholders to see the Solargiga Energy Holdings Limited (HKG:757) share price down 26% in the last month. But that doesn't change the fact that the returns over the last year have been spectacular. Indeed, the share price is up a whopping 737% in that time. So it is not that surprising to see the stock retrace a little. While winners often keep winning, it can pay to be cautious after a strong rise.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Solargiga Energy 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last twelve months, Solargiga Energy Holdings' revenue grew by 37%. That's a fairly respectable growth rate. Arguably it's more than reflected in the truly wondrous share price gain of 737% in the last year. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at Solargiga Energy Holdings.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. This free interactive report on Solargiga Energy Holdings' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's nice to see that Solargiga Energy Holdings shareholders have received a total shareholder return of 737% over the last year. That gain is better than the annual TSR over five years, which is 18%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Solargiga Energy Holdings better, we need to consider many other factors. For instance, we've identified 3 warning signs for Solargiga Energy Holdings (1 makes us a bit uncomfortable) that you should be aware of.
Solargiga Energy Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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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