Yahoo Finance If You Had Bought Open Orphan (LON:ORPH) Shares A Year Ago You'd Have Earned 168% Returns
Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Open Orphan plc (LON:ORPH) share price had more than doubled in just one year - up 168%. But it's down 7.9% in the last week. However, this might be related to the overall market decline of 1.3% in a week. We'll need to follow Open Orphan for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Check out our latest analysis for Open Orphan
Given that Open Orphan 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Open Orphan grew its revenue by 504% last year. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 168% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
This free interactive report on Open Orphan's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Open Orphan shareholders should be happy with the total gain of 168% over the last twelve months. That's better than the more recent three month gain of 0.8%, implying that share price has plateaued recently. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). It's always interesting to track share price performance over the longer term. But to understand Open Orphan better, we need to consider many other factors. Even so, be aware that Open Orphan is showing 1 warning sign in our investment analysis , you should know about...
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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