If You Had Bought Kinetix Systems Holdings (HKG:8606) Stock A Year Ago, You Could Pocket A 673% Gain Today

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. While not every stock performs well, when investors win, they can win big. For example, the Kinetix Systems Holdings Limited (HKG:8606) share price is up a whopping 673% in the last year, a handsome return in a single year. On top of that, the share price is up 407% in about a quarter. Kinetix Systems Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

We love happy stories like this one. The company should be really proud of that performance!

View our latest analysis for Kinetix Systems Holdings

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Kinetix Systems Holdings went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

We think that the revenue growth of 51% could have some investors interested. We do see some companies suppress earnings in order to accelerate revenue growth.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Kinetix Systems Holdings shareholders have gained 673% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 407% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. For example, we've discovered 5 warning signs for Kinetix Systems Holdings (1 shouldn't be ignored!) that you should be aware of before investing here.

Of course Kinetix Systems 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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