Shareholders Are Raving About How The BSQUARE (NASDAQ:BSQR) Share Price Increased 319%

The BSQUARE Corporation (NASDAQ:BSQR) share price has had a bad week, falling 21%. 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 319% boost to the share price. So the recent fall isn't enough to negate the good performance. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

Check out our latest analysis for BSQUARE

Given that BSQUARE 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

BSQUARE actually shrunk its revenue over the last year, with a reduction of 15%. This is in stark contrast to the splendorous stock price, which has rocketed 319% since this time a year ago. It's pretty clear the market isn't basing its valuation on fundamental metrics like revenue. While this gain looks like speculative buying to us, sometimes speculation pays off.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

If you are thinking of buying or selling BSQUARE stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that BSQUARE has rewarded shareholders with a total shareholder return of 319% in the last twelve months. That's better than the annualised return of 3% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. For example, we've discovered 3 warning signs for BSQUARE (1 is a bit unpleasant!) that you should be aware of before investing here.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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