For many, the main point of investing in the stock market is to achieve spectacular returns. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, the IGas Energy plc (LON:IGAS) share price is up a whopping 531% in the last 1 year, a handsome return in a single year. Also pleasing for shareholders was the 253% gain in the last three months. And shareholders have also done well over the long term, with an increase of 88% in the last three years. We love happy stories like this one. The company should be really proud of that performance!
Since the stock has added UK£17m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
See our latest analysis for IGas Energy
IGas Energy wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last twelve months, IGas Energy's revenue grew by 76%. That's stonking growth even when compared to other loss-making stocks. But the share price seems headed to the moon, up 531% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We're pleased to report that IGas Energy shareholders have received a total shareholder return of 531% over one year. That gain is better than the annual TSR over five years, which is 11%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for IGas Energy that you should be aware of before investing here.