Introducing Sportech (LON:SPO), The Stock That Zoomed 141% In The Last Year

Sportech PLC (LON:SPO) shareholders have seen the share price descend 12% over the month. But that doesn't change the fact that the returns over the last year have been very strong. During that period, the share price soared a full 141%. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

View our latest analysis for Sportech

Because Sportech made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Sportech saw its revenue shrink by 19%. We're a little surprised to see the share price pop 141% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

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

earnings-and-revenue-growth

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Sportech has rewarded shareholders with a total shareholder return of 141% in the last twelve months. That certainly beats the loss of about 7% per year over the last half decade. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Sportech better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Sportech .

Of course Sportech may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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