meanwhile Remedy Entertainment Oyj (HEL:REMEDY) shareholders are probably happy overall, but the share price hasn't been particularly strong lately, with the share price down 24% in the last quarter. But that hardly detracts from the really solid long-term profits the company has generated over his five years. Most investors would be satisfied with his 133% return for that period. In general, long-term revenue provides a more accurate picture of the quality of your business than short-term revenue. Of course, that doesn't mean it's cheap now. Returns over the past five years have been good, but the share price is down 59% in the past three years, so we feel sorry for shareholders who haven't held the stock that long.
After the big rally over the past week, it's worth checking whether the long-term returns are driven by improving fundamentals.
Check out our latest analysis for Remedy Entertainment Oyj.
Remedy Entertainment Oyj isn't currently profitable, so most analysts will focus on revenue growth to get an idea of how fast the underlying business is growing. When a company isn't making profits, we usually expect good revenue growth. That's because rapid growth in revenue can often be easily extrapolated to predict profits of considerable size.
Over the past five years, Remedy Entertainment Oyj has grown its revenue at 8.2% per year. This is a pretty good growth rate over the long term. Broadly speaking, this solid progress could be reflected in a healthy share price increase of 18% per year over five years. It's well worth monitoring earnings growth trends, as accelerating growth can signal opportunity. Accelerating growth can be a sign of an inflection point, and could indicate that profits lie ahead. 100% worth seeing
The company's earnings and revenue (long-term) are depicted in the image below (click to see the exact numbers).
You can see how this balance sheet has strengthened (or weakened) over time. free Interactive graphics.
What about total shareholder return (TSR)?
Investors should note that there is a difference between Remedy Entertainment Oyj's total shareholder return (TSR) and share price change discussed above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital increases and spin-offs. The company's history of dividend payments means that Remedy Entertainment Oyj's TSR of 138% over the last five years is better than its share price return.
different perspective
We're disappointed to report that Remedy Entertainment Oyj shareholders are down 23% for the year. Unfortunately, this is worse than the overall market decline of 6.9%. However, it is also possible that the stock price is simply being affected by broader market fluctuations. It might be worth looking at the basics in case a good opportunity presents itself. Long-term investors probably won't be too upset since they would have made a 19% return each year over five years. If fundamental data continues to point to long-term sustainable growth, the current selloff could be an opportunity worth considering. It's always interesting to track stock performance over the long term. But to understand Remedy Entertainment Oyj better, you need to consider many other factors.For example, taking risks – Remedy Entertainment Oyj 1 warning sign I think you should know.
However, please note: Remedy Entertainment Oyj may not be the best stock to buy.So take a look at this free A list of interesting companies that have grown their earnings in the past (and are predicted to grow in the future).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Finnish exchanges.
Valuation is complex, but we help make it simple.
Check out our comprehensive analysis, including below, to see if Remedy Entertainment Oyj is potentially overvalued or undervalued. Fair value estimates, risks and caveats, dividends, insider trading, and financial health.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.