Australia markets close in 1 hour 16 minutes
  • ALL ORDS

    7,269.00
    +154.50 (+2.17%)
     
  • ASX 200

    6,988.80
    +150.50 (+2.20%)
     
  • AUD/USD

    0.7043
    +0.0009 (+0.13%)
     
  • OIL

    87.04
    +0.43 (+0.50%)
     
  • GOLD

    1,797.30
    +4.20 (+0.23%)
     
  • BTC-AUD

    52,980.02
    +1,932.13 (+3.78%)
     
  • CMC Crypto 200

    845.32
    +25.81 (+3.15%)
     
  • AUD/EUR

    0.6310
    +0.0002 (+0.03%)
     
  • AUD/NZD

    1.0705
    +0.0024 (+0.23%)
     
  • NZX 50

    11,904.98
    -145.34 (-1.21%)
     
  • NASDAQ

    14,003.11
    -169.65 (-1.20%)
     
  • FTSE

    7,554.31
    +84.53 (+1.13%)
     
  • Dow Jones

    34,160.78
    -7.31 (-0.02%)
     
  • DAX

    15,524.27
    +64.88 (+0.42%)
     
  • Hang Seng

    23,576.97
    -230.03 (-0.97%)
     
  • NIKKEI 225

    26,715.73
    +545.43 (+2.08%)
     

Should Buru Energy (ASX:BRU) Be Disappointed With Their 63% Profit?

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • BRNGF

Buru Energy Limited (ASX:BRU) shareholders might be concerned after seeing the share price drop 21% in the last quarter. But that doesn't change the reality that over twelve months the stock has done really well. In that time we've seen the stock easily surpass the market return, with a gain of 63%.

Check out our latest analysis for Buru Energy

Because Buru Energy 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Buru Energy actually shrunk its revenue over the last year, with a reduction of 18%. Despite the lack of revenue growth, the stock has returned a solid 63% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Buru Energy shareholders have received a total shareholder return of 63% over the last year. That certainly beats the loss of about 7% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Buru Energy better, we need to consider many other factors. For instance, we've identified 3 warning signs for Buru Energy 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting