While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, the EMvision Medical Devices Limited (ASX:EMV) share price is up a whopping 303% in the last year, a handsome return in a single year. On top of that, the share price is up 137% in about a quarter. We'll need to follow EMvision Medical Devices for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
EMvision Medical Devices wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last twelve months, EMvision Medical Devices's revenue grew by 59%. That's well above most other pre-profit companies. But the share price seems headed to the moon, up 303% as previously highlighted. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling EMvision Medical Devices stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
EMvision Medical Devices boasts a total shareholder return of 303% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 137% in that time. This suggests the company is continuing to win over new investors. It's always interesting to track share price performance over the longer term. But to understand EMvision Medical Devices better, we need to consider many other factors. Even so, be aware that EMvision Medical Devices is showing 4 warning signs in our investment analysis , you should know about...
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.
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