The recent 9.5% withdrawal is not enough to hurt long-term shareholders in Surgical Science Sweden (STO: SUS), they are still up 599% for 3 years
Surgical Science Sweden AB (publ) (STO: SUS) shareholders may be worried after seeing the share price fall by 26% during the last quarter. But for three years, the show has been really wonderful. The longer term shows that the share price rose 599% during that period. Probably the latest case is to wait for such a strong rise. Only time will tell if there is still too much optimism reflected in the share price. Everyone who thought of the rewarding ride would probably like to talk about it.
Although Surgical Science Sweden has lost SEK 970 million from its market capitalization this week, let’s take a look at its long-term basic trends and see if they have driven returns.
Check out our latest analysis for Surgical Science Sweden
While Surgical Science Sweden made a small profit in the past year, we believe that the market is probably more focused on top-line growth at the moment. In general, we would consider a stock like this together with loss-making companies, simply because the profit quantity is so low. In order for shareholders to have confidence that a company will increase profits significantly, it must increase revenues.
For the past three years, Surgical Science Sweden has increased its revenues by 50% annually. This is well above most pre-profit companies. And it’s not just revenue that is picking up speed. The share price rose 91% per year during that time. It is always tempting to take profits after such a price increase, but fast-growing companies such as Surgical Science Sweden can sometimes maintain strong growth for many years. In fact, it may be time to add it to your watchlist, if you are not already familiar with the stock.
The image below shows how revenue and revenue have been tracked over time (if you click on the image you can see more details).
We know that Surgical Science Sweden has improved its results over the past three years, but what does the future have to offer? This free interactive report on Surgical Science Sweden’s balance sheet strength is a good place to start, if you want to investigate the stock further.
Another perspective
It is nice to see that Surgical Science Sweden’s shareholders have increased by 57% (in total) during the past year. That is less than the 91% it has done, for shareholders, every year for three years. I find it very interesting to look at the share price in the long run as a proxy for business development. But to really gain insight, we need to consider other information as well. Example: We have discovered 2 warning signs for Surgical Science Sweden you should be aware of.
Obvious, You can find a great investment by looking elsewhere. So take a look at this free list of companies that we expect will increase revenue.
Please note that the market return stated in this article reflects the market-weighted average return on equities currently traded on SE exchanges.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst forecasts only using an impartial method and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by basic data. Please note that our analysis may not take into account the latest price sensitive company announcements or qualitative material. Simply Wall St has no position in any of the shares mentioned.