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By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at D&G Technology Holding Company Limited (HKG:1301), which is up 34%, over three years, soundly beating the market return of 27% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 18% in the last year.
See our latest analysis for D&G Technology Holding
Given that D&G Technology Holding 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. 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.
Over the last three years D&G Technology Holding has grown its revenue at 1.1% annually. Considering the company is losing money, we think that rate of revenue growth is uninspiring. In that time the share price is up 10% per year, which is not unreasonable given the revenue gorwth. Ultimately, the important thing is whether the company is trending to profitability. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of D&G Technology Holding's earnings, revenue and cash flow.
A Dividend Lost
The share price return figures discussed above don't include the value of dividends paid previously, but the total shareholder return (TSR) does. Many would argue the TSR gives a more complete picture of the value a stock brings to its holders. D&G Technology Holding's TSR over the last 3 years is 41%; better than its share price return. Although the company had to cut dividends, it has paid cash to shareholders in the past.
A Different Perspective
We're pleased to report that D&G Technology Holding rewarded shareholders with a total shareholder return of 18% over the last year. That's better than the annualized TSR of 12% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.