Yahoo Finance Announcing: TP Group (LON:TPG) Stock Increased An Energizing 126% In The Last Three Years
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The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. For example, the TP Group plc (LON:TPG) share price has soared 126% in the last three years. That sort of return is as solid as granite. In the last week the share price is up 1.4%.
Check out our latest analysis for TP Group
While TP Group made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
TP Group's revenue trended up 25% each year over three years. That's well above most pre-profit companies. Meanwhile, the share price performance has been pretty solid at 31% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say TP Group is still worth investigating - successful businesses can often keep growing for long periods.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
It is of course excellent to see how TP Group has grown profits over the years, but the future is more important for shareholders. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It's nice to see that TP Group shareholders have received a total shareholder return of 13% over the last year. That certainly beats the loss of about 8.6% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
