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Investing can be hard but the potential fo an individual stock to pay off big time inspires us. But when you hold the right stock for the right time period, the rewards can be truly huge. For example, the Storytel AB (STO:STORY B) share price is up a whopping 360% in the last three years, a handsome return for long term holders. We note the stock price is up 4.9% in the last seven days.
See our latest analysis for Storytel
Given that Storytel 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years Storytel has grown its revenue at 46% annually. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 66% per year in that time. Despite the strong run, top performers like Storytel have been known to go on winning for decades. So we'd recommend you take a closer look at this one, or even put it on your watchlist.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
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 it makes a lot of sense to check out what analysts think Storytel will earn in the future (free profit forecasts).
A Different Perspective
Storytel shareholders are up 2.6% for the year. Unfortunately this falls short of the market return of around 11%. But the (superior) three-year TSR of 66% per year is some consolation. We prefer focus on longer term returns, as they are usually a more meaningful indication of the underlying business. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.
Storytel is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on SE exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.