Yahoo Finance Postmedia Network Canada (TSE:PNC.B) Shareholders Have Enjoyed An Impressive 190% Share Price Gain
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. To wit, the Postmedia Network Canada Corp. (TSE:PNC.B) share price has flown 190% in the last three years. How nice for those who held the stock! And in the last week the share price has popped 62%.
View our latest analysis for Postmedia Network Canada
Postmedia Network Canada isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Postmedia Network Canada actually saw its revenue drop by 9.9% per year over three years. So we wouldn't have expected the share price to gain 43% per year, but it has. It's a good reminder that expectations about the future, not the past history, always impact share prices.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
This free interactive report on Postmedia Network Canada's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that Postmedia Network Canada has rewarded shareholders with a total shareholder return of 93% in the last twelve months. Notably the five-year annualised TSR loss of 64% 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Postmedia Network Canada you should know about.
But note: Postmedia Network Canada may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
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.
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. Thank you for reading.
