Did You Miss Nexion Technologies' (HKG:8420) Whopping 487% Share Price Gain?

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. For example, the Nexion Technologies Limited (HKG:8420) share price is up a whopping 487% in the last year, a handsome return in a single year. And in the last week the share price has popped 20%. Unfortunately the longer term returns are not so good, with the stock falling 1.8% in the last three years.

See our latest analysis for Nexion Technologies

Because Nexion Technologies made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 year Nexion Technologies saw its revenue grow by 110%. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 487% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.

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're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Nexion Technologies' earnings, revenue and cash flow.

A Different Perspective

We're pleased to report that Nexion Technologies rewarded shareholders with a total shareholder return of 487% over the last year. What is absolutely clear is that is far preferable to the dismal 0.6% average annual loss suffered over the last three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Nexion Technologies (of which 1 shouldn't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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