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Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. To wit, the Dignitana AB (publ.) (STO:DIGN) share price is 60% higher than it was a year ago, much better than the market return of around -4.8% (not including dividends) in the same period. So that should have shareholders smiling. Zooming out, the stock is actually down 58% in the last three years.
Check out our latest analysis for Dignitana AB (publ.)
Given that Dignitana AB (publ.) 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. 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 year Dignitana AB (publ.) saw its revenue grow by 58%. That's a head and shoulders above most loss-making companies. The solid 60% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Dignitana AB (publ.). Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Dignitana AB (publ.)'s financial health with this free report on its balance sheet.
What about the Total Shareholder Return (TSR)?
Investors should note that there's a difference between Dignitana AB (publ.)'s total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dignitana AB (publ.) hasn't been paying dividends, but its TSR of 64% exceeds its share price return of 60%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
A Different Perspective
We're pleased to report that Dignitana AB (publ.) shareholders have received a total shareholder return of 64% over one year. That gain is better than the annual TSR over five years, which is 1.5%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.