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Oneview Healthcare PLC (ASX:ONE) shareholders have seen the share price descend 17% over the month. But that doesn't undermine the fantastic longer term performance (measured over five years). In that time, the share price has soared some 480% higher! Arguably, the recent fall is to be expected after such a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.
Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.
Because Oneview Healthcare made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
For the last half decade, Oneview Healthcare can boast revenue growth at a rate of 7.8% per year. That's a fairly respectable growth rate. Arguably it's more than reflected in the very strong share price gain of 42% a year over a half a decade. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. If you are thinking of buying or selling Oneview Healthcare stock, you should check out this free report showing analyst profit forecasts .
What About The Total Shareholder Return (TSR)?
Investors should note that there's a difference between Oneview Healthcare's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. We note that Oneview Healthcare's TSR, at 582% is higher than its share price return of 480%. When you consider it hasn't been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.