Update: Nxtdigital (NSE:NXTDIGITAL) Stock Gained 33% In The Last Year

It hasn't been the best quarter for Nxtdigital Limited (NSE:NXTDIGITAL) shareholders, since the share price has fallen 17% in that time. But that doesn't change the fact that the returns over the last year have been pleasing. After all, the share price is up a market-beating 33% in that time.

View our latest analysis for Nxtdigital

Nxtdigital isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Nxtdigital's revenue grew by 12%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 33%. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

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 good to see that Nxtdigital has rewarded shareholders with a total shareholder return of 34% in the last twelve months. And that does include the dividend. That gain is better than the annual TSR over five years, which is 9%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Even so, be aware that Nxtdigital is showing 3 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

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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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