Did River iGaming's (OB:RIVER) Share Price Deserve to Gain 58%?

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. To wit, the River iGaming p.l.c. (OB:RIVER) share price is 58% higher than it was a year ago, much better than the market decline of around 2.9% (not including dividends) in the same period. So that should have shareholders smiling. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

Check out our latest analysis for River iGaming

Because River iGaming 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. 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.

River iGaming grew its revenue by 195% last year. That's a head and shoulders above most loss-making companies. While the share price gain of 58% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at River iGaming. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

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

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 River iGaming shareholders have gained 58% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 68% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand River iGaming better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with River iGaming .

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on NO 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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