Brooge Energy (NASDAQ:BROG) Shareholders Have Enjoyed A 22% Share Price Gain

One way to deal with stock volatility is to ensure you have a properly diverse portfolio. But if you're going to beat the market overall, you need to have individual stocks that outperform. Brooge Energy Limited (NASDAQ:BROG) has done well over the last year, with the stock price up 22% beating the market return of 21% (not including dividends). Brooge Energy hasn't been listed for long, so it's still not clear if it is a long term winner.

Check out our latest analysis for Brooge Energy

Given that Brooge 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. 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 Brooge Energy saw its revenue grow by 1.9%. That's not a very high growth rate considering it doesn't make profits. In keeping with the revenue growth, the share price gained 22% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

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

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free report showing analyst forecasts should help you form a view on Brooge Energy

A Different Perspective

In the last year the market returned about 24%, and Brooge Energy generated a TSR of 22% for its shareholders. A substantial portion of that gain has come in the last three months, with the stock up 21% in that time. It could be that word is spreading about its positive business attributes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 1 warning sign for Brooge Energy you should be aware of.

Of course Brooge Energy may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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