Yahoo Finance Investors in Corporación América Airports (NYSE:CAAP) have made a notable return of 97% over the past year
The simplest way to invest in stocks is to buy exchange traded funds. But one can do better than that by picking better than average stocks (as part of a diversified portfolio). For example, the Corporación América Airports S.A. (NYSE:CAAP) share price is up 97% in the last 1 year, clearly besting the market return of around 26% (not including dividends). So that should have shareholders smiling. Zooming out, the stock is actually down 25% in the last three years.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
See our latest analysis for Corporación América Airports
Given that Corporación América Airports 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Corporación América Airports saw its revenue shrink by 33%. Despite the lack of revenue growth, the stock has returned a solid 97% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
Pleasingly, Corporación América Airports' total shareholder return last year was 97%. That certainly beats the loss of about 8% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. You could get a better understanding of Corporación América Airports' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Of course Corporación América Airports 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 US exchanges.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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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