Even though AirAsia X Berhad (KLSE:AAX) has lost RM120m market cap in last 7 days, shareholders are still up 192% over 1 year

The AirAsia X Berhad (KLSE:AAX) share price has had a bad week, falling 14%. But that doesn't change the fact that the returns over the last year have been very strong. We're very pleased to report the share price shot up 192% in that time. So we think most shareholders won't be too upset about the recent fall. Only time will tell if there is still too much optimism currently reflected in the share price.

Although AirAsia X Berhad has shed RM120m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

View our latest analysis for AirAsia X Berhad

AirAsia X Berhad wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

AirAsia X Berhad grew its revenue by 91% last year. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 192% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

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

This free interactive report on AirAsia X Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that AirAsia X Berhad has rewarded shareholders with a total shareholder return of 192% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. Even so, be aware that AirAsia X Berhad is showing 1 warning sign in our investment analysis , you should know about...

But note: AirAsia X Berhad may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.