Should Asia Plastic Recycling Holding (TPE:1337) Be Disappointed With Their 61% Profit?

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Asia Plastic Recycling Holding Limited (TPE:1337) share price is up 61% in the last year, clearly besting the market return of around 36% (not including dividends). That's a solid performance by our standards! Zooming out, the stock is actually down 25% in the last three years.

See our latest analysis for Asia Plastic Recycling Holding

Asia Plastic Recycling Holding isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong 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.

Asia Plastic Recycling Holding actually shrunk its revenue over the last year, with a reduction of 26%. The stock is up 61% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Asia Plastic Recycling Holding's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Asia Plastic Recycling Holding has rewarded shareholders with a total shareholder return of 61% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. 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. For example, we've discovered 2 warning signs for Asia Plastic Recycling Holding (1 is a bit unpleasant!) that you should be aware of before investing here.

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 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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