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If You Had Bought Bigtincan Holdings (ASX:BTH) Shares A Year Ago You'd Have Made 50%

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Passive investing in index funds can generate returns that roughly match the overall market. But investors can boost returns by picking market-beating companies to own shares in. For example, the Bigtincan Holdings Limited (ASX:BTH) share price is up 50% in the last year, clearly besting than the market return of around 4.6% (not including dividends). So that should have shareholders smiling. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

See our latest analysis for Bigtincan Holdings

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Given that Bigtincan Holdings 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Bigtincan Holdings saw its revenue grow by 51%. That's a head and shoulders above most loss-making companies. The solid 50% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. So quite frankly it could be a good time to investigate Bigtincan Holdings in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

ASX:BTH Income Statement, July 9th 2019
ASX:BTH Income Statement, July 9th 2019

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

A Different Perspective

It's nice to see that Bigtincan Holdings shareholders have gained 52% over the last year. Unfortunately the share price is down 6.6% over the last quarter. Shorter term share price moves often don't signify much about the business itself. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

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.

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.

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. Thank you for reading.