- Japan
- /
- Hospitality
- /
- TSE:2484
The Demae-CanLtd (TYO:2484) Share Price Is Up 909% And Shareholders Are Delighted
Demae-Can Co.,Ltd (TYO:2484) shareholders have seen the share price descend 17% over the month. But that doesn't change the fact that the returns over the last half decade have been spectacular. In that time, the share price has soared some 909% higher! So we don't think the recent decline in the share price means its story is a sad one. Of course what matters most is whether the business can improve itself sustainably, thus justifying a higher price.
We love happy stories like this one. The company should be really proud of that performance!
See our latest analysis for Demae-CanLtd
Because Demae-CanLtd 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. Shareholders of unprofitable companies usually expect 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.
For the last half decade, Demae-CanLtd can boast revenue growth at a rate of 18% per year. Even measured against other revenue-focussed companies, that's a good result. Arguably, this is well and truly reflected in the strong share price gain of 59%(per year) over the same period. Despite the strong run, top performers like Demae-CanLtd have been known to go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Demae-CanLtd's financial health with this free report on its balance sheet.
What about the Total Shareholder Return (TSR)?
We'd be remiss not to mention the difference between Demae-CanLtd's total shareholder return (TSR) and its share price return. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Dividends have been really beneficial for Demae-CanLtd shareholders, and that cash payout contributed to why its TSR of 920%, over the last 5 years, is better than the share price return.
A Different Perspective
It's good to see that Demae-CanLtd has rewarded shareholders with a total shareholder return of 145% in the last twelve months. That gain is better than the annual TSR over five years, which is 59%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Demae-CanLtd better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Demae-CanLtd you should be aware of, and 1 of them is a bit concerning.
We will like Demae-CanLtd better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on JP exchanges.
When trading Demae-CanLtd or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted
New: Manage All Your Stock Portfolios in One Place
We've created the ultimate portfolio companion for stock investors, and it's free.
• Connect an unlimited number of Portfolios and see your total in one currency
• Be alerted to new Warning Signs or Risks via email or mobile
• Track the Fair Value of your stocks
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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
About TSE:2484
Flawless balance sheet and slightly overvalued.