Stock Analysis

Minetech Resources Berhad (KLSE:MINETEC) Shareholders Have Enjoyed An Impressive 169% Share Price Gain

KLSE:AIZO
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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, you can make far more than 100% on a really good stock. For instance, the price of Minetech Resources Berhad (KLSE:MINETEC) stock is up an impressive 169% over the last five years.

View our latest analysis for Minetech Resources Berhad

Minetech Resources 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Minetech Resources Berhad saw its revenue shrink by 4.1% per year. On the other hand, the share price done the opposite, gaining 22%, compound, each year. It's a good reminder that expectations about the future, not the past history, always impact share prices. Still, this situation makes us a little wary of the stock.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
KLSE:MINETEC Earnings and Revenue Growth January 29th 2021

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

A Different Perspective

We're pleased to report that Minetech Resources Berhad shareholders have received a total shareholder return of 106% over one year. That's better than the annualised return of 22% over half a decade, implying that the company is doing better recently. 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 Minetech Resources Berhad better, we need to consider many other factors. Even so, be aware that Minetech Resources Berhad is showing 5 warning signs in our investment analysis , and 2 of those are concerning...

Of course Minetech Resources Berhad may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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