How Much Did Rolling Optics Holding's(STO:RO) Shareholders Earn From Share Price Movements Over The Last Year?

By
Simply Wall St
Published
May 27, 2021
OM:RO
Source: Shutterstock

Rolling Optics Holding AB (publ) (STO:RO) shareholders should be happy to see the share price up 20% in the last month. But that is minimal compensation for the share price under-performance over the last year. After all, the share price is down 35% in the last year, significantly under-performing the market.

View our latest analysis for Rolling Optics Holding

Because Rolling Optics Holding 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.

Rolling Optics Holding grew its revenue by 61% over the last year. That's a strong result which is better than most other loss making companies. The share price drop of 35% over twelve months would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
OM:RO Earnings and Revenue Growth May 28th 2021

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While Rolling Optics Holding shareholders are down 35% for the year, the market itself is up 48%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 4.2% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. It's always interesting to track share price performance over the longer term. But to understand Rolling Optics Holding better, we need to consider many other factors. For instance, we've identified 4 warning signs for Rolling Optics Holding (1 can't be ignored) that you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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