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When you buy shares in a company, there is always a risk that the price drops to zero. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the FINEOS Corporation Holdings plc (ASX:FCL) share price had more than doubled in just one year - up 121%. Also pleasing for shareholders was the 51% gain in the last three months. FINEOS Corporation Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.
See our latest analysis for FINEOS Corporation Holdings
Because FINEOS Corporation Holdings 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
FINEOS Corporation Holdings grew its revenue by 29% last year. That's a fairly respectable growth rate. While that revenue growth is pretty good the share price performance outshone it, with a lift of 121% as mentioned above. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling FINEOS Corporation Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
FINEOS Corporation Holdings boasts a total shareholder return of 121% for the last year. And the share price momentum remains respectable, with a gain of 51% in the last three months. 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for FINEOS Corporation Holdings you should know about.
Of course FINEOS Corporation Holdings 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 AU 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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