Alarum Technologies (TLV:ALAR) shareholder returns have been massive, earning 325% in 1 year

For many, the main point of investing in the stock market is to achieve spectacular returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. In the case of Alarum Technologies Ltd. (TLV:ALAR), the share price is up an incredible 325% in the last year alone. Also pleasing for shareholders was the 198% gain in the last three months. On the other hand, longer term shareholders have had a tougher run, with the stock falling 17% in three years.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

View our latest analysis for Alarum Technologies

Alarum Technologies wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Alarum Technologies saw its revenue grow by 42%. That's a fairly respectable growth rate. Arguably it's more than reflected in the truly wondrous share price gain of 325% in the last year. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on Alarum Technologies.

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

If you are thinking of buying or selling Alarum Technologies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Alarum Technologies shareholders have received a total shareholder return of 325% over one year. That certainly beats the loss of about 15% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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 instance, we've identified 3 warning signs for Alarum Technologies (2 are significant) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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