If You Had Bought Scout Gaming Group (STO:SCOUT) Shares A Year Ago You'd Have Earned 136% Returns

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Scout Gaming Group AB (publ) (STO:SCOUT) share price had more than doubled in just one year - up 136%. It's down 6.1% in the last seven days. However, the stock hasn't done so well in the longer term, with the stock only up 16% in three years.

See our latest analysis for Scout Gaming Group

Given that Scout Gaming Group 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last twelve months, Scout Gaming Group's revenue grew by 107%. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 136% in response. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

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

Take a more thorough look at Scout Gaming Group's financial health with this free report on its balance sheet.

A Different Perspective

Pleasingly, Scout Gaming Group's total shareholder return last year was 136%. That's better than the annualized TSR of 5% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Scout Gaming Group (of which 1 is a bit unpleasant!) you should know about.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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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