Can You Imagine How Elated TSEC's (TPE:6443) Shareholders Feel About Its 408% Share Price Gain?

It hasn't been the best quarter for TSEC Corporation (TPE:6443) shareholders, since the share price has fallen 17% in that time. But that doesn't change the fact that the returns over the last year have been spectacular. In that time, shareholders have had the pleasure of a 408% boost to the share price. So we wouldn't blame sellers for taking some profits. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

View our latest analysis for TSEC

Because TSEC made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

In the last year TSEC saw its revenue grow by 3.4%. That's not a very high growth rate considering it doesn't make profits. So the 408% gain in just twelve months is completely unexpected. We're happy that investors have made money, but we can't help questioning whether the rise is sustainable. It just goes to show that big money can be made if you buy the right stock early.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on TSEC's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that TSEC has rewarded shareholders with a total shareholder return of 408% in the last twelve months. That gain is better than the annual TSR over five years, which is 8%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Case in point: We've spotted 1 warning sign for TSEC you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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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