Investors in RPMGlobal Holdings (ASX:RUL) have made a stellar return of 127% over the past five years




  • In Business
  • 2023-01-25 02:57:22Z
  • By Simply Wall St.
 

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But when you pick a company that is really flourishing, you can make more than 100%. One great example is RPMGlobal Holdings Limited (ASX:RUL) which saw its share price drive 127% higher over five years. In the last week shares have slid back 1.2%.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for RPMGlobal Holdings

Given that RPMGlobal 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. 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.

For the last half decade, RPMGlobal Holdings can boast revenue growth at a rate of 1.3% per year. That's not a very high growth rate considering the bottom line. In comparison, the share price rise of 18% per year over the last half a decade is pretty impressive. Shareholders should be pretty happy with that, although interested investors might want to examine the financial data more closely to see if the gains are really justified. Some might suggest that the sentiment around the stock is rather positive.

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

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

RPMGlobal Holdings shareholders are down 6.7% for the year, but the market itself is up 6.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 18% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of RPMGlobal Holdings by clicking this link.

RPMGlobal Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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.

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  • 베트남 클럽
    (2023-01-25 13:47:43Z)

    An interesting discussion may be valued at comment. I do think that you ought to write more about this topic, it might not be described as a taboo subject but usually individuals are too few to chat on such topics. To another. Cheers

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