Shareholders Are Thrilled That The United Cooperative Assurance (TADAWUL:8190) Share Price Increased 180%

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the United Cooperative Assurance Company (TADAWUL:8190) share price had more than doubled in just one year - up 180%. On top of that, the share price is up 88% in about a quarter. And shareholders have also done well over the long term, with an increase of 72% in the last three years.

Check out our latest analysis for United Cooperative Assurance

Because United Cooperative Assurance 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year United Cooperative Assurance saw its revenue grow by 9.7%. That's not great considering the company is losing money. In contrast, the share price took off during the year, gaining 180%. 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 graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that United Cooperative Assurance shareholders have received a total shareholder return of 180% over one year. That gain is better than the annual TSR over five years, which is 20%. Therefore it seems like sentiment around the company has been positive lately. 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 for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with United Cooperative Assurance (at least 1 which is concerning) , and understanding them should be part of your investment process.

We will like United Cooperative Assurance better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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