Stock Analysis

Wel-Dish.Incorporated's (TSE:2901) growing losses don't faze investors as the stock pops 11% this past week

TSE:2901
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Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Wel-Dish.Incorporated (TSE:2901) share price had more than doubled in just one year - up 195%. It's also good to see the share price up 133% over the last quarter. Looking back further, the stock price is 180% higher than it was three years ago.

The past week has proven to be lucrative for Wel-Dish.Incorporated investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for Wel-Dish.Incorporated

Given that Wel-Dish.Incorporated 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Wel-Dish.Incorporated actually shrunk its revenue over the last year, with a reduction of 25%. We're a little surprised to see the share price pop 195% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

earnings-and-revenue-growth
TSE:2901 Earnings and Revenue Growth September 24th 2024

This free interactive report on Wel-Dish.Incorporated's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We're pleased to report that Wel-Dish.Incorporated shareholders have received a total shareholder return of 195% over one year. That gain is better than the annual TSR over five years, which is 23%. Therefore it seems like sentiment around the company has been positive lately. 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 Wel-Dish.Incorporated better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Wel-Dish.Incorporated you should be aware of.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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

Valuation is complex, but we're here to simplify it.

Discover if Wel-Dish.Incorporated might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.