Yahoo Finance Kingstone Companies (NASDAQ:KINS) shareholder returns have been solid, earning 288% in 1 year
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. 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 Kingstone Companies, Inc. (NASDAQ:KINS) share price had more than doubled in just one year - up 288%. Also pleasing for shareholders was the 60% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. On the other hand, longer term shareholders have had a tougher run, with the stock falling 38% in three years.
Since it's been a strong week for Kingstone Companies shareholders, let's have a look at trend of the longer term fundamentals.
Check out our latest analysis for Kingstone Companies
Given that Kingstone Companies only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
Over the last twelve months, Kingstone Companies' revenue grew by 3.7%. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 288%. The business will need a lot more growth to justify that increase. We're not so sure that revenue growth is driving the market optimism about the stock.
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 Kingstone Companies' financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Kingstone Companies shareholders have received a total shareholder return of 288% over the last year. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 3 warning signs for Kingstone Companies you should be aware of, and 1 of them is a bit unpleasant.
For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.
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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.
