Unfortunately, investing is risky – companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Trinity Biotech plc (NASDAQ:TRIB) share price had more than doubled in just one year – up 213%. It’s also up 34% in about a month. In contrast, the longer term returns are negative, since the share price is 45% lower than it was three years ago.
Because Trinity Biotech 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Trinity Biotech saw its revenue shrink by 10%. So we would not have expected the share price to rise 213%. It just goes to show the market doesn’t always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
If you are thinking of buying or selling Trinity Biotech stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We’re pleased to report that Trinity Biotech shareholders have received a total shareholder return of 213% over one year. There’s no doubt those recent returns are much better than the TSR loss of 12% per year over five years. 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 Trinity Biotech better, we need to consider many other factors. Take risks, for example – Trinity Biotech has 2 warning signs we think you should be aware of.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.