For many, the main point of investing in the stock market is to achieve spectacular returns. And highest quality companies can see their share prices grow by huge amounts. For example, the Artroniq Berhad (KLSE:ARTRONIQ) share price is up a whopping 472% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 249% in about a quarter.
Artroniq Berhad isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good 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.
In the last 5 years Artroniq Berhad saw its revenue grow at 20% 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 42%(per year) over the same period. It's never too late to start following a top notch stock like Artroniq Berhad, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Artroniq Berhad stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's good to see that Artroniq Berhad has rewarded shareholders with a total shareholder return of 309% in the last twelve months. That's better than the annualised return of 42% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Artroniq Berhad (of which 2 shouldn't be ignored!) you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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Artroniq Berhad, an investment holding company, manufactures and sells polyethylene compounds for wire and cable insulation, and jacketing in Malaysia, Asia, the Middle East, the Americas, and internationally.
Flawless balance sheet with acceptable track record.