Shareholders Of 2cureX (STO:2CUREX) Must Be Happy With Their 280% Total Return

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But when you pick a company that is really flourishing, you can make more than 100%. To wit, the 2cureX AB (publ) (STO:2CUREX) share price has flown 259% in the last three years. Most would be happy with that. Also pleasing for shareholders was the 78% gain in the last three months.

View our latest analysis for 2cureX

Because 2cureX 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years 2cureX has grown its revenue at 47% annually. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 53% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say 2cureX is still worth investigating - successful businesses can often keep growing for long periods.

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

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between 2cureX's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. 2cureX hasn't been paying dividends, but its TSR of 280% exceeds its share price return of 259%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

We're pleased to report that 2cureX rewarded shareholders with a total shareholder return of 99% over the last year. That gain actually surpasses the 56% 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. 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. Take risks, for example - 2cureX has 5 warning signs (and 1 which is significant) we think you should know about.

But note: 2cureX may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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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