Is Solarvest Holdings Berhad's (KLSE:SLVEST) 143% Share Price Increase Well Justified?

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Solarvest Holdings Berhad (KLSE:SLVEST) share price had more than doubled in just one year - up 143%. Also pleasing for shareholders was the 127% gain in the last three months. Solarvest Holdings Berhad hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Solarvest Holdings Berhad

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

During the last year, Solarvest Holdings Berhad actually saw its earnings per share drop 99%.

So we don't think that investors are paying too much attention to EPS. Since the change in EPS doesn't seem to correlate with the change in share price, it's worth taking a look at other metrics.

We are skeptical of the suggestion that the 0.6% dividend yield would entice buyers to the stock. However the year on year revenue growth of 12% would help. Many businesses do go through a phase where they have to forgo some profits to drive business development, and sometimes its for the best.

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 Solarvest Holdings Berhad stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Solarvest Holdings Berhad shareholders should be happy with the total gain of 144% over the last twelve months, including dividends. A substantial portion of that gain has come in the last three months, with the stock up 127% in that time. This suggests the company is continuing to win over new investors. 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. To that end, you should learn about the 3 warning signs we've spotted with Solarvest Holdings Berhad (including 1 which is concerning) .

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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