Nanoco Group's (LON:NANO) investors will be pleased with their impressive 275% return over the last three years




  • In Business
  • 2022-10-02 08:31:34Z
  • By Simply Wall St.
 

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But if you buy shares in a really great company, you can more than double your money. For instance the Nanoco Group plc (LON:NANO) share price is 275% higher than it was three years ago. Most would be happy with that. On top of that, the share price is up 21% in about a quarter.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for Nanoco Group

Given that Nanoco Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Nanoco Group actually saw its revenue drop by 48% per year over three years. So we wouldn't have expected the share price to gain 55% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.

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

This free interactive report on Nanoco Group's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Nanoco Group shareholders have received a total shareholder return of 118% over the last year. That gain is better than the annual TSR over five years, which is 10%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Like risks, for instance. Every company has them, and we've spotted 5 warning signs for Nanoco Group (of which 1 is significant!) you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Nabaltec Third Quarter 2022 Earnings: EPS: €1.38 (vs €0.49 in 3Q 2021)
Nabaltec Third Quarter 2022 Earnings: EPS: €1.38 (vs €0.49 in 3Q 2021)

Nabaltec ( ETR:NTG ) Third Quarter 2022 Results Key Financial Results Revenue: €56.6m (up 21% from 3Q 2021). Net...

Fraport (ETR:FRA) shareholders have endured a 47% loss from investing in the stock five years ago
Fraport (ETR:FRA) shareholders have endured a 47% loss from investing in the stock five years ago

The main aim of stock picking is to find the market-beating stocks. But in any portfolio, there will be mixed results...

PropNex
PropNex's (SGX:OYY) investors will be pleased with their solid 278% return over the last three years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put...

Tune Protect Group Berhad Third Quarter 2022 Earnings: RM0.016 loss per share (vs RM0.002 loss in 3Q 2021)
Tune Protect Group Berhad Third Quarter 2022 Earnings: RM0.016 loss per share (vs RM0.002 loss in 3Q 2021)

Tune Protect Group Berhad ( KLSE:TUNEPRO ) Third Quarter 2022 Results Key Financial Results Revenue: RM77.0m (up 47...

Able Global Berhad Third Quarter 2022 Earnings: EPS: RM0.027 (vs RM0.028 in 3Q 2021)
Able Global Berhad Third Quarter 2022 Earnings: EPS: RM0.027 (vs RM0.028 in 3Q 2021)

Able Global Berhad ( KLSE:ABLEGLOB ) Third Quarter 2022 Results Key Financial Results Revenue: RM139.1m (up 18% from 3Q...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business