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The one-year returns for Adtiger Corporations' (HKG:1163) shareholders have been solid, yet its earnings growth was even better

Simply Wall St ·  Jul 29, 2022 19:30

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right stock, you can make a lot more than 100%. For example, the Adtiger Corporations Limited (HKG:1163) share price has soared 156% return in just a single year. It's up an even more impressive 262% over the last quarter. Adtiger Corporations hasn't been listed for long, so it's still not clear if it is a long term winner.

The past week has proven to be lucrative for Adtiger Corporations investors, so let's see if fundamentals drove the company's one-year performance.

View our latest analysis for Adtiger Corporations

While Adtiger Corporations 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. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Adtiger Corporations saw its revenue grow by 67%. That's stonking growth even when compared to other loss-making stocks. Meanwhile, the market has paid attention, sending the share price soaring 156% in response. 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).

earnings-and-revenue-growthSEHK:1163 Earnings and Revenue Growth July 29th 2022

We know that Adtiger Corporations has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Adtiger Corporations in this interactive graph of future profit estimates.

A Different Perspective

Adtiger Corporations shareholders should be happy with the total gain of 156% over the last twelve months. A substantial portion of that gain has come in the last three months, with the stock up 262% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Adtiger Corporations better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Adtiger Corporations you should know about.

Of course Adtiger Corporations 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 HK exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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