It might be of some concern to shareholders to see the Pasal Real Estate Development S.A. (ATH:PASAL) share price down 20% in the last month. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 106% in that time. So some might not be surprised to see the price retrace some. Only time will tell if there is still too much optimism currently reflected in the share price.
View our latest analysis for Pasal Real Estate Development
Given that Pasal Real Estate Development 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. 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.
In the last year Pasal Real Estate Development saw its revenue grow by 3.6%. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 106%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Pasal Real Estate Development stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It's good to see that Pasal Real Estate Development has rewarded shareholders with a total shareholder return of 106% in the last twelve months. Notably the five-year annualised TSR loss of 3.3% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GR exchanges.
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.
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. Thank you for reading.