As Acconeer (STO: ACCON) shareholders have gained 230% in 3 years, rising losses may now be on their minds as the shares are down 11% this week
It’s been a sweet week for Acconeer AB (publ) (STO: ACCON), which are down 11%. But that doesn’t change the fact that returns over the past three years have been very strong. In fact, the stock price is up 222% from three years ago. For some, the recent decline in the share price would not be surprising after such a good run. Fundamental trading performance will ultimately dictate whether the top is in place or if this is a great buying opportunity.
In light of the stock’s 11% drop over the past week, we want to look at the longer-term story and see if fundamentals have been driving the company’s positive three-year performance.
Discover our latest analysis for Acconeer
Given that Acconeer has posted losses over the past twelve months, we think the market is likely more focused on revenue and revenue growth, at least for now. Shareholders of unprofitable companies generally expect strong revenue growth. Indeed, rapid revenue growth can be easily extrapolated to predict profits, often of considerable size.
Over the past three years, Acconeer has grown its revenue by 33% per year. That’s a lot better than most loss-making companies. Meanwhile, share price performance has been quite strong at 48% compounded over three years. This suggests that the market has recognized the progress made by the company, at least to a significant extent. Nonetheless, we’d say Acconeer is still worth investigating – successful companies can often continue to grow for long periods of time.
You can see how earnings and income have changed over time in the image below (click on the graph to see exact values).
Balance sheet strength is critical. It might be interesting to take a look at our free report on the evolution of its financial situation over time.
What about the Total Shareholder Return (TSR)?
We’ve already covered Acconeer’s share price performance, but we also need to mention its total shareholder return (TSR). The TSR attempts to capture the value of the dividends (as if they were reinvested) as well as any benefits or discounted capital increases offered to shareholders. We note that Acconeer’s TSR, at 230%, is higher than its share price return of 222%. Considering that it did not pay a dividend, this data suggests that shareholders benefited from a spin-off or had the opportunity to acquire shares at an attractive price during a fund raising. discount funds.
A different perspective
It’s nice to see that Acconeer shareholders have gained 145% (in total) over the past year. So this year’s TSR was actually better than the three-year (annualized) TSR of 49%. These improved returns may hint at genuine trading momentum, implying that now could be a great time to dig deeper. It is always interesting to follow the evolution of the share price over the long term. But to better understand Acconeer, we need to consider many other factors. Take for example the ubiquitous specter of investment risk. We have identified 3 warning signs with Acconeer (at least 1 which is a little unpleasant), and understanding them should be part of your investment process.
For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on SE exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.