Stock Analysis

Yunhong Green CTI (NASDAQ:YHGJ) delivers shareholders splendid 298% return over 1 year, surging 13% in the last week alone

NasdaqCM:YHGJ
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Yunhong Green CTI Ltd. (NASDAQ:YHGJ) share price has soared 298% return in just a single year. It's also good to see the share price up 42% over the last quarter. And shareholders have also done well over the long term, with an increase of 40% in the last three years.

The past week has proven to be lucrative for Yunhong Green CTI investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for Yunhong Green CTI

Yunhong Green CTI wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Yunhong Green CTI saw its revenue shrink by 23%. So we would not have expected the share price to rise 298%. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

earnings-and-revenue-growth
NasdaqCM:YHGJ Earnings and Revenue Growth October 30th 2023

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..

A Different Perspective

It's nice to see that Yunhong Green CTI shareholders have received a total shareholder return of 298% over the last year. That certainly beats the loss of about 5% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Yunhong Green CTI better, we need to consider many other factors. Even so, be aware that Yunhong Green CTI is showing 4 warning signs in our investment analysis , and 2 of those are potentially serious...

But note: Yunhong Green CTI 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 American exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether Yunhong Green CTI is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.