The 11% return this week takes Doxee's (BIT:DOX) shareholders one-year gains to 294%

By
Simply Wall St
Published
September 11, 2021
BIT:DOX
Source: Shutterstock

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the Doxee S.p.A. (BIT:DOX) share price has soared 294% return in just a single year. On top of that, the share price is up 54% in about a quarter. Doxee hasn't been listed for long, so it's still not clear if it is a long term winner.

Since the stock has added €9.3m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Doxee

Given that Doxee didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over the last twelve months, Doxee's revenue grew by 1.9%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 294%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
BIT:DOX Earnings and Revenue Growth September 12th 2021

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

A Different Perspective

Doxee shareholders should be happy with the total gain of 294% over the last twelve months. The more recent returns haven't been as impressive as the longer term returns, coming in at just 54%. It seems likely the market is waiting on fundamental developments with the business before pushing the share price higher (or lower). 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 3 warning signs for Doxee (1 is potentially serious!) that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

If you decide to trade Doxee, use the lowest-cost* platform that is rated #1 Overall by Barron’s, Interactive Brokers. Trade stocks, options, futures, forex, bonds and funds on 135 markets, all from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.