Basic-Fit's (AMS:BFIT) growing losses don't faze investors as the stock advances 7.1% this past week

By
Simply Wall St
Published
September 27, 2021
ENXTAM:BFIT
Source: Shutterstock

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. Long term Basic-Fit N.V. (AMS:BFIT) shareholders would be well aware of this, since the stock is up 137% in five years. Also pleasing for shareholders was the 13% gain in the last three months.

Since it's been a strong week for Basic-Fit shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Basic-Fit

Because Basic-Fit made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 5 years Basic-Fit saw its revenue grow at 8.7% per year. That's a pretty good long term growth rate. We'd argue this growth has been reflected in the share price which has climbed at a rate of 19% per year over in that time. It's well worth monitoring the growth trend in revenue, because if growth accelerates, that might signal an opportunity. When a growth trend accelerates, be it in revenue or earnings, it can indicate an inflection point for the business, which is can often be an opportunity for investors.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
ENXTAM:BFIT Earnings and Revenue Growth September 28th 2021

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So it makes a lot of sense to check out what analysts think Basic-Fit will earn in the future (free profit forecasts).

A Different Perspective

We're pleased to report that Basic-Fit shareholders have received a total shareholder return of 101% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 19% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Basic-Fit you should know about.

Basic-Fit is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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