Yahoo Finance If You Had Bought Blue Prism Group (LON:PRSM) Shares A Year Ago You'd Have Earned47% Returns
If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the Blue Prism Group plc (LON:PRSM) share price is up 47% in the last year, clearly besting the market decline of around 14% (not including dividends). So that should have shareholders smiling. And shareholders have also done well over the long term, with an increase of 41% in the last three years.
View our latest analysis for Blue Prism Group
Blue Prism Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Blue Prism Group saw its revenue grow by 77%. That's stonking growth even when compared to other loss-making stocks. The solid 47% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Blue Prism Group. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free report showing analyst forecasts should help you form a view on Blue Prism Group
A Different Perspective
It's nice to see that Blue Prism Group shareholders have gained 47% (in total) over the last year. That's better than the annualized TSR of 12% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Blue Prism Group on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Blue Prism Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for Blue Prism Group that you should be aware of.
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 GB exchanges.
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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