Advertisement
Singapore markets close in 7 hours 13 minutes
  • Straits Times Index

    3,491.94
    -5.84 (-0.17%)
     
  • Nikkei

    41,190.68
    -1,033.32 (-2.45%)
     
  • Hang Seng

    18,225.50
    -67.88 (-0.37%)
     
  • FTSE 100

    8,252.91
    +29.57 (+0.36%)
     
  • Bitcoin USD

    61,298.49
    +1,560.34 (+2.61%)
     
  • CMC Crypto 200

    1,279.90
    +81.33 (+6.77%)
     
  • S&P 500

    5,615.35
    +30.81 (+0.55%)
     
  • Dow

    40,000.90
    +247.10 (+0.62%)
     
  • Nasdaq

    18,398.45
    +115.04 (+0.63%)
     
  • Gold

    2,410.80
    -9.90 (-0.41%)
     
  • Crude Oil

    81.87
    -0.34 (-0.41%)
     
  • 10-Yr Bond

    4.1890
    -0.0040 (-0.10%)
     
  • FTSE Bursa Malaysia

    1,622.46
    +3.40 (+0.21%)
     
  • Jakarta Composite Index

    7,327.58
    -7,300.41 (-49.91%)
     
  • PSE Index

    6,638.23
    -10.00 (-0.15%)
     

Investors ignore increasing losses at Pavillon Holdings (SGX:596) as stock jumps 219% this past week

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Pavillon Holdings Ltd. (SGX:596) share price has soared 155% in the last 1 year. Most would be very happy with that, especially in just one year! Better yet, the 410% gain over the last thirty days has shareholders excited. Looking back further, the stock price is 65% higher than it was three years ago.

After a strong gain in the past week, it's worth seeing if longer term returns have been driven by improving fundamentals.

See our latest analysis for Pavillon Holdings

Pavillon Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

ADVERTISEMENT

Pavillon Holdings grew its revenue by 10% last year. That's not great considering the company is losing money. So we wouldn't have expected the share price to rise by 155%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

This free interactive report on Pavillon Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Pavillon Holdings shareholders have received a total shareholder return of 155% over the last year. That gain is better than the annual TSR over five years, which is 15%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Pavillon Holdings better, we need to consider many other factors. Take risks, for example - Pavillon Holdings has 2 warning signs (and 1 which is a bit concerning) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Singaporean exchanges.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.