Investing in RPMGlobal Holdings (ASX:RUL) three years ago would have delivered you a 176% gain




  • In Business
  • 2022-08-18 02:21:28Z
  • By Simply Wall St.
 

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For instance the RPMGlobal Holdings Limited (ASX:RUL) share price is 176% higher than it was three years ago. How nice for those who held the stock! It's down 1.8% in the last seven days.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

Check out our latest analysis for RPMGlobal Holdings

RPMGlobal Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally expect to see good 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.

In the last 3 years RPMGlobal Holdings saw its revenue shrink by 3.5% per year. So we wouldn't have expected the share price to gain 40% per year, but it has. It's fair to say shareholders are definitely counting on a bright future.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

While the broader market lost about 0.1% in the twelve months, RPMGlobal Holdings shareholders did even worse, losing 20%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. On the bright side, long term shareholders have made money, with a gain of 18% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you would like to research RPMGlobal Holdings in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Of course RPMGlobal Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU exchanges.

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

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Join A Paid User Research Session
You'll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here

COMMENTS

More Related News

Shareholders in Emerson Electric (NYSE:EMR) are in the red if they invested a year ago
Shareholders in Emerson Electric (NYSE:EMR) are in the red if they invested a year ago

Most people feel a little frustrated if a stock they own goes down in price. But sometimes a share price fall can have...

Investors five-year losses continue as Sunstone Hotel Investors (NYSE:SHO) dips a further 3.9% this week, earnings continue to decline
Investors five-year losses continue as Sunstone Hotel Investors (NYSE:SHO) dips a further 3.9% this week, earnings continue to decline

In order to justify the effort of selecting individual stocks, it's worth striving to beat the returns from a market...

The total return for Cathay General Bancorp (NASDAQ:CATY) investors has risen faster than earnings growth over the last three years
The total return for Cathay General Bancorp (NASDAQ:CATY) investors has risen faster than earnings growth over the last three years

Buying a low-cost index fund will get you the average market return. But if you invest in individual stocks, some are...

The total return for Crown Castle (NYSE:CCI) investors has risen faster than earnings growth over the last five years
The total return for Crown Castle (NYSE:CCI) investors has risen faster than earnings growth over the last five years

While Crown Castle Inc. ( NYSE:CCI ) shareholders are probably generally happy, the stock hasn't had particularly good...

Is Adobe Inc. (NASDAQ:ADBE) Potentially Undervalued?
Is Adobe Inc. (NASDAQ:ADBE) Potentially Undervalued?

Let's talk about the popular Adobe Inc. ( NASDAQ:ADBE ). The company's shares saw significant share price movement...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Business