Despite currently being unprofitable, Nippon Sheet Glass Company (TSE:5202) has delivered a 29% return to shareholders over 1 year

Nippon Sheet Glass Company, Limited (TSE:5202) shareholders might be concerned after seeing the share price drop 28% in the last week. But that doesn't change the reality that over twelve months the stock has done really well. To wit, it had solidly beat the market, up 29%.

While this past week has detracted from the company's one-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

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Nippon Sheet Glass Company 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 hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Over the last twelve months, Nippon Sheet Glass Company's revenue grew by 0.5%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 29%. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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

A Different Perspective

It's nice to see that Nippon Sheet Glass Company shareholders have received a total shareholder return of 29% over the last year. That's better than the annualised return of 1.6% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Nippon Sheet Glass Company better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Nippon Sheet Glass Company you should be aware of.

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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 Japanese 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.