Shareholders Are Raving About How The Wafrah for Industry and Development (TADAWUL:2100) Share Price Increased 359%

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. While not every stock performs well, when investors win, they can win big. For example, Wafrah for Industry and Development Company (TADAWUL:2100) has generated a beautiful 359% return in just a single year. On top of that, the share price is up 71% in about a quarter. And shareholders have also done well over the long term, with an increase of 218% in the last three years.

View our latest analysis for Wafrah for Industry and Development

Given that Wafrah for Industry and Development 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year Wafrah for Industry and Development saw its revenue shrink by 18%. So it's very confusing to see that the share price gained a whopping 359%. 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.

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 Wafrah for Industry and Development shareholders have received a total shareholder return of 359% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 24% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Wafrah for Industry and Development better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Wafrah for Industry and Development (including 1 which doesn't sit too well with us) .

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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