Investors Who Bought Plejd (NGM:PLEJD) Shares Three Years Ago Are Now Up 249%

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the Plejd AB (publ) (NGM:PLEJD) share price is 249% higher than it was three years ago. How nice for those who held the stock! It's also good to see the share price up 27% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 12% in 90 days).

Check out our latest analysis for Plejd

While Plejd made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Plejd's revenue trended up 50% each year over three years. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 52% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. Nonetheless, we'd say Plejd is still worth investigating - successful businesses can often keep growing for long periods.

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

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

A Different Perspective

It's nice to see that Plejd shareholders have gained 210% (in total) over the last year. That gain actually surpasses the 52% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Plejd better, we need to consider many other factors. For instance, we've identified 2 warning signs for Plejd that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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