Investors Who Bought Solid State System (GTSM:3259) Shares A Year Ago Are Now Up 111%

When you buy shares in a company, there is always a risk that the price drops to zero. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Solid State System Co., Ltd. (GTSM:3259) share price has soared 111% return in just a single year. On top of that, the share price is up 14% in about a quarter. But this move may well have been assisted by the reasonably buoyant market (up 20% in 90 days). Looking back further, the stock price is 39% higher than it was three years ago.

See our latest analysis for Solid State System

Solid State System 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.

Solid State System actually shrunk its revenue over the last year, with a reduction of 3.9%. We're a little surprised to see the share price pop 111% 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 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 Solid State System's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Solid State System shareholders have received a total shareholder return of 111% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 0.9% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Solid State System better, we need to consider many other factors. For instance, we've identified 1 warning sign for Solid State System that you should be aware of.

But note: Solid State System 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 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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