Tourism Enterprises (TADAWUL:4170) Shareholders Have Enjoyed An Impressive 115% Share Price Gain

Unless you borrow money to invest, the potential losses are limited. But if you pick the right stock, you can make a lot more than 100%. For example, the Tourism Enterprises Co. (TADAWUL:4170) share price has soared 115% return in just a single year. It's also good to see the share price up 32% over the last quarter. Also impressive, the stock is up 82% over three years, making long term shareholders happy, too.

See our latest analysis for Tourism Enterprises

Given that Tourism Enterprises 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last twelve months, Tourism Enterprises' revenue grew by 0.2%. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 115%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

We're pleased to report that Tourism Enterprises shareholders have received a total shareholder return of 115% over one year. That gain is better than the annual TSR over five years, which is 8%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Take risks, for example - Tourism Enterprises has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

But note: Tourism Enterprises 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 SA 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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