Investors Who Bought Prismi (BIT:PRM) Shares A Year Ago Are Now Up 106%

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. For example, the Prismi SpA (BIT:PRM) share price has soared 106% in the last year. Most would be very happy with that, especially in just one year! We note the stock price is up 1.7% in the last seven days. Looking back further, the stock price is 46% higher than it was three years ago.

See our latest analysis for Prismi

Prismi 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Prismi saw its revenue grow by 52%. That's well above most other pre-profit companies. Meanwhile, the market has paid attention, sending the share price soaring 106% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).

Take a more thorough look at Prismi's financial health with this freereport on its balance sheet.

A Different Perspective

It's nice to see that Prismi shareholders have received a total shareholder return of 106% over the last year. There's no doubt those recent returns are much better than the TSR loss of 31% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. You could get a better understanding of Prismi's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.