The Advanced Enzyme Technologies (NSE:ADVENZYMES) Share Price Has Gained 114%, So Why Not Pay It Some Attention?

By
Simply Wall St
Published
December 13, 2020
NSEI:ADVENZYMES

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Advanced Enzyme Technologies Limited (NSE:ADVENZYMES) share price has soared 114% return in just a single year. It's also good to see the share price up 43% over the last quarter. Having said that, the longer term returns aren't so impressive, with stock gaining just 20% in three years.

View our latest analysis for Advanced Enzyme Technologies

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.

Advanced Enzyme Technologies was able to grow EPS by 13% in the last twelve months. This EPS growth is significantly lower than the 114% increase in the share price. So it's fair to assume the market has a higher opinion of the business than it a year ago.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
NSEI:ADVENZYMES Earnings Per Share Growth December 14th 2020

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of Advanced Enzyme Technologies' earnings, revenue and cash flow.

A Different Perspective

Pleasingly, Advanced Enzyme Technologies' total shareholder return last year was 115%. That's including the dividend. So this year's TSR was actually better than the three-year TSR (annualized) of 7%. Given the track record of solid returns over varying time frames, it might be worth putting Advanced Enzyme Technologies on your watchlist. 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 2 warning signs for Advanced Enzyme Technologies that you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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