Yahoo Finance Is Storytel's (STO:STORY B) Share Price Gain Of 152% Well Earned?
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. For example, the Storytel AB (publ) (STO:STORY B) share price has soared 152% in the last three years. How nice for those who held the stock! On top of that, the share price is up 44% in about a quarter.
Check out our latest analysis for Storytel
Storytel isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years Storytel saw its revenue grow at 29% per year. That's well above most pre-profit companies. Along the way, the share price gained 36% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We're pleased to report that Storytel rewarded shareholders with a total shareholder return of 63% over the last year. That's better than the annualized TSR of 36% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Storytel on your watchlist. It's always interesting to track share price performance over the longer term. But to understand Storytel better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Storytel (of which 1 is concerning!) you should know about.
Of course Storytel 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 SE exchanges.
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.
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. Thank you for reading.
