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Shareholders Are Thrilled That The Nubeva Technologies (CVE:NBVA) Share Price Increased 278%

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When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Nubeva Technologies Ltd. (CVE:NBVA) share price had more than doubled in just one year - up 278%. It's also up 11% in about a month. Having said that, the longer term returns aren't so impressive, with stock gaining just 6.3% in three years.

Check out our latest analysis for Nubeva Technologies

Given that Nubeva Technologies 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. Shareholders of unprofitable companies usually expect strong revenue growth. 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.

Nubeva Technologies grew its revenue by 1,049% last year. That's well above most other pre-profit companies. And the share price has responded, gaining 278% as we previously mentioned. It's great to see strong revenue growth, but the question is whether it can be sustained. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

This free interactive report on Nubeva Technologies' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, Nubeva Technologies' total shareholder return last year was 278%. That gain actually surpasses the 2.0% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 5 warning signs for Nubeva Technologies (1 shouldn't be ignored) that you should be aware of.

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 CA 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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