Did United Renewable Energy's (TPE:3576) Share Price Deserve to Gain 60%?

It hasn't been the best quarter for United Renewable Energy Co., Ltd. (TPE:3576) shareholders, since the share price has fallen 21% in that time. But looking back over the last year, the returns have actually been rather pleasing! After all, the share price is up a market-beating 60% in that time.

View our latest analysis for United Renewable Energy

Given that United Renewable Energy 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

United Renewable Energy actually shrunk its revenue over the last year, with a reduction of 29%. The stock is up 60% 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 company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at United Renewable Energy's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that United Renewable Energy shareholders have received a total shareholder return of 60% over the last year. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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 - United Renewable Energy has 2 warning signs we think you should be aware of.

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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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