If You Had Bought Acelon Chemicals & Fiber (TPE:1466) Stock A Year Ago, You Could Pocket A 115% Gain Today

Some Acelon Chemicals & Fiber Corporation (TPE:1466) shareholders are probably rather concerned to see the share price fall 37% over the last three months. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 115% in that time. So it is important to view the recent reduction in price through that lense. The real question is whether the business is trending in the right direction.

View our latest analysis for Acelon Chemicals & Fiber

Given that Acelon Chemicals & Fiber 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Acelon Chemicals & Fiber actually shrunk its revenue over the last year, with a reduction of 28%. We're a little surprised to see the share price pop 115% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

A Different Perspective

It's nice to see that Acelon Chemicals & Fiber shareholders have received a total shareholder return of 115% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 1.5% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Acelon Chemicals & Fiber is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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