Yahoo Finance ANGLE's (LON:AGL) growing losses don't faze investors as the stock rallies 14% this past week
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For instance the ANGLE plc (LON:AGL) share price is 200% higher than it was three years ago. That sort of return is as solid as granite. And in the last month, the share price has gained 19%. We note that ANGLE reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.
After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.
View our latest analysis for ANGLE
Given that ANGLE 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Over the last three years ANGLE has grown its revenue at 5.6% annually. That's not a very high growth rate considering it doesn't make profits. In contrast, the stock has popped 44% per year in that time - an impressive result. We'd need to take a closer look at the revenue and profit trends to see whether the improvements might justify that sort of increase. It seems likely that the market is pretty optimistic about ANGLE, given it is losing money.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at ANGLE's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that ANGLE has rewarded shareholders with a total shareholder return of 158% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 14% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - ANGLE has 5 warning signs (and 2 which are concerning) we think you should know about.
But note: ANGLE may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
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.
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