Announcing: Vapotherm (NYSE:VAPO) Stock Increased An Energizing 225% In The Last Year

Vapotherm, Inc. (NYSE:VAPO) shareholders have seen the share price descend 29% over the month. Despite this, the stock is a strong performer over the last year, no doubt about that. During that period, the share price soared a full 225%. So some might not be surprised to see the price retrace some. The real question is whether the business is trending in the right direction.

Check out our latest analysis for Vapotherm

Given that Vapotherm 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 Vapotherm saw its revenue grow by 161%. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 225% in response. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Vapotherm will earn in the future (free profit forecasts).

A Different Perspective

Vapotherm boasts a total shareholder return of 225% for the last year. We regret to report that the share price is down 6.2% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand Vapotherm better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Vapotherm you should be aware of.

Vapotherm is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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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