The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But in contrast you can make much more than 100% if the company does well. To wit, the DX (Group) plc (LON:DX.) share price has flown 157% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 51% gain in the last three months.
View our latest analysis for DX (Group)
DX (Group) 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. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years DX (Group) saw its revenue grow at 5.1% per year. That's not a very high growth rate considering it doesn't make profits. In comparison, the share price rise of 37% per year over the last three years 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. It may be that the market is pretty optimistic about DX (Group) if you look to the bottom line.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
It's good to see that there was some significant insider buying in the last three months. That's a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. If you are thinking of buying or selling DX (Group) stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
It's nice to see that DX (Group) shareholders have received a total shareholder return of 106% over the last year. That gain is better than the annual TSR over five years, which is 5%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand DX (Group) better, we need to consider many other factors. To that end, you should be aware of the 1 warning sign we've spotted with DX (Group) .
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.