Stock Analysis

The Artificial Solutions International (STO:ASAI) Share Price Has Gained 38% And Shareholders Are Hoping For More

OM:TENEO
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It's been a soft week for Artificial Solutions International AB (publ) (STO:ASAI) shares, which are down 24%. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 38% in that time.

View our latest analysis for Artificial Solutions International

Given that Artificial Solutions International 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Artificial Solutions International grew its revenue by 12% last year. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 38% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
OM:ASAI Earnings and Revenue Growth December 10th 2020

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

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Artificial Solutions International's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Artificial Solutions International hasn't been paying dividends, but its TSR of 43% exceeds its share price return of 38%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

It's nice to see that Artificial Solutions International shareholders have gained 43% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 14% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand Artificial Solutions International better, we need to consider many other factors. Take risks, for example - Artificial Solutions International has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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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