Advertisement
Singapore markets close in 7 hours 53 minutes
  • Straits Times Index

    3,292.69
    +10.64 (+0.32%)
     
  • Nikkei

    38,149.94
    -124.11 (-0.32%)
     
  • Hang Seng

    17,763.03
    +16.12 (+0.09%)
     
  • FTSE 100

    8,121.24
    -22.89 (-0.28%)
     
  • Bitcoin USD

    57,817.96
    -2,372.59 (-3.94%)
     
  • CMC Crypto 200

    1,267.28
    -71.79 (-5.36%)
     
  • S&P 500

    5,018.39
    -17.30 (-0.34%)
     
  • Dow

    37,903.29
    +87.37 (+0.23%)
     
  • Nasdaq

    15,605.48
    -52.34 (-0.33%)
     
  • Gold

    2,334.80
    +23.80 (+1.03%)
     
  • Crude Oil

    79.21
    +0.21 (+0.27%)
     
  • 10-Yr Bond

    4.5950
    -0.0910 (-1.94%)
     
  • FTSE Bursa Malaysia

    1,575.97
    -6.69 (-0.42%)
     
  • Jakarta Composite Index

    7,234.20
    -7,155.78 (-49.73%)
     
  • PSE Index

    6,700.49
    -69.15 (-1.02%)
     

McBride (LON:MCB) delivers shareholders incredible 330% return over 1 year, surging 17% in the last week alone

While stock picking isn't easy, for those willing to persist and learn, it is possible to buy shares in great companies, and generate wonderful returns. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, the McBride plc (LON:MCB) share price is up a whopping 330% in the last 1 year, a handsome return in a single year. On top of that, the share price is up 146% in about a quarter. Having said that, the longer term returns aren't so impressive, with stock gaining just 6.0% in three years.

Since it's been a strong week for McBride shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for McBride

McBride isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

ADVERTISEMENT

Over the last twelve months, McBride's revenue grew by 31%. We respect that sort of growth, no doubt. But the market is even more excited about it, with the price apparently bound for the moon, up 330% in one of earth's orbits. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on McBride.

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
LSE:MCB Earnings and Revenue Growth January 6th 2024

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that McBride shareholders have received a total shareholder return of 330% over the last year. That certainly beats the loss of about 6% 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. Even so, be aware that McBride is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...

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 British 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.