Introducing Doppler (ATH:DOPPLER), The Stock That Zoomed 168% In The Last Year

It might be of some concern to shareholders to see the Doppler S.A. (ATH:DOPPLER) share price down 17% in the last month. On the other hand, over the last twelve months the stock has delivered rather impressive returns. We're very pleased to report the share price shot up 168% in that time. So we think most shareholders won't be too upset about the recent fall. More important, going forward, is how the business itself is going.

View our latest analysis for Doppler

Given that Doppler didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last twelve months, Doppler's revenue grew by 1.6%. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 168%. The business will need a lot more growth to justify that increase. We're not so sure that revenue growth is driving the market optimism about the stock.

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

ATSE:DOPPLER Income Statement, February 25th 2020
ATSE:DOPPLER Income Statement, February 25th 2020

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

A Different Perspective

We're pleased to report that Doppler shareholders have received a total shareholder return of 168% over one year. Notably the five-year annualised TSR loss of 9.8% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand Doppler better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Doppler (of which 1 is concerning!) you should know about.

But note: Doppler may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.