Shareholders Are Thrilled That The V.S. International Group (HKG:1002) Share Price Increased 122%

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When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right stock, you can make a lot more than 100%. For example, the V.S. International Group Limited (HKG:1002) share price has soared 122% in the last year. Most would be very happy with that, especially in just one year! Unfortunately the longer term returns are not so good, with the stock falling 31% in the last three years.

View our latest analysis for V.S. International Group

Because V.S. International Group 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. 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.

In the last year V.S. International Group saw its revenue shrink by 45%. We're a little surprised to see the share price pop 122% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

SEHK:1002 Income Statement, January 26th 2020
SEHK:1002 Income Statement, January 26th 2020

This free interactive report on V.S. International Group's balance sheet strength is a great place to start, if you want to investigate the stock further.

What about the Total Shareholder Return (TSR)?

We've already covered V.S. International Group's share price action, but we should also mention its total shareholder return (TSR). 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. Its history of dividend payouts mean that V.S. International Group's TSR of 122% over the last year is better than the share price return.

A Different Perspective

It's good to see that V.S. International Group has rewarded shareholders with a total shareholder return of 122% in the last twelve months. That certainly beats the loss of about 18% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For instance, we've identified 3 warning signs for V.S. International Group (1 is significant) that you should be aware of.