Investors Who Bought TechnoDex Berhad (KLSE:TDEX) Shares A Year Ago Are Now Up 391%

Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, the TechnoDex Berhad (KLSE:TDEX) share price is up a whopping 391% in the last year, a handsome return in a single year. On top of that, the share price is up 108% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. Looking back further, the stock price is 100% higher than it was three years ago.

See our latest analysis for TechnoDex Berhad

Given that TechnoDex Berhad didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

TechnoDex Berhad actually shrunk its revenue over the last year, with a reduction of 9.8%. So it's very confusing to see that the share price gained a whopping 391%. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that TechnoDex Berhad shareholders have received a total shareholder return of 391% over the last year. That gain is better than the annual TSR over five years, which is 19%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand TechnoDex Berhad better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for TechnoDex Berhad you should be aware of, and 1 of them shouldn't be ignored.

Of course TechnoDex 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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