Update: CAVE InteractiveLTD (TYO:3760) Stock Gained 40% In The Last Year

CAVE Interactive CO.,LTD. (TYO:3760) shareholders might be concerned after seeing the share price drop 12% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. Looking at the full year, the company has easily bested an index fund by gaining 40%.

Check out our latest analysis for CAVE InteractiveLTD

Because CAVE InteractiveLTD made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

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

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

A Different Perspective

It's nice to see that CAVE InteractiveLTD shareholders have received a total shareholder return of 40% over the last year. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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 CAVE InteractiveLTD is showing 3 warning signs in our investment analysis , you should know about...

But note: CAVE InteractiveLTD may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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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. 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.
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