Shareholders Of Tikun Olam - Cannbit Pharmaceuticals (TLV:TKUN) Must Be Happy With Their 135% Total Return

It might be of some concern to shareholders to see the Tikun Olam - Cannbit Pharmaceuticals Ltd (TLV:TKUN) share price down 15% in the last month. But that shouldn't obscure the pleasing returns achieved by shareholders over the last three years. To wit, the share price did better than an index fund, climbing 95% during that period.

View our latest analysis for Tikun Olam - Cannbit Pharmaceuticals

Because Tikun Olam - Cannbit Pharmaceuticals 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling Tikun Olam - Cannbit Pharmaceuticals stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Tikun Olam - Cannbit Pharmaceuticals' total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Tikun Olam - Cannbit Pharmaceuticals hasn't been paying dividends, but its TSR of 135% exceeds its share price return of 95%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

Tikun Olam - Cannbit Pharmaceuticals' TSR for the year was broadly in line with the market average, at 48%. The silver lining is that the share price is up in the short term, which flies in the face of the annualised loss of 13% over the last five years. While 'turnarounds seldom turn' there are green shoots for Tikun Olam - Cannbit Pharmaceuticals. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 6 warning signs with Tikun Olam - Cannbit Pharmaceuticals (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IL 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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