Did You Miss Avision's (TPE:2380) Impressive 108% Share Price Gain?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Avision Inc. (TPE:2380) share price had more than doubled in just one year - up 108%. It's also up 31% in about a month. On the other hand, longer term shareholders have had a tougher run, with the stock falling 5.7% in three years.

View our latest analysis for Avision

Avision 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Avision actually shrunk its revenue over the last year, with a reduction of 19%. So we would not have expected the share price to rise 108%. 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 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 Avision'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 Avision has rewarded shareholders with a total shareholder return of 108% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 1.8% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Avision better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with Avision (including 1 which is a bit concerning) .

We will like Avision better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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