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Harvest Technology Group Ltd (ASX:HTG) shareholders might be concerned after seeing the share price drop 14% in the last week. But that doesn't change the fact that the returns over the last year have been spectacular. In that time, shareholders have had the pleasure of a 848% boost to the share price. So we wouldn't blame sellers for taking some profits. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).
We love happy stories like this one. The company should be really proud of that performance!
Because Harvest Technology Group 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last twelve months, Harvest Technology Group's revenue grew by 28,736%. That's well above most other pre-profit companies. But the share price has really rocketed in response gaining 848% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Harvest Technology Group's balance sheet strength is a great place to start, if you want to investigate the stock further.
What about the Total Shareholder Return (TSR)?
We've already covered Harvest Technology Group's share price action, but we should also mention its total shareholder return (TSR). 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. Harvest Technology Group hasn't been paying dividends, but its TSR of 888% exceeds its share price return of 848%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
A Different Perspective
It's nice to see that Harvest Technology Group shareholders have gained 888% (in total) over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 72%. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Harvest Technology Group better, we need to consider many other factors. Take risks, for example - Harvest Technology Group has 4 warning signs (and 1 which is potentially serious) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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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