Ainsworth Game Technology (ASX: AGI) Shareholders Achieved 247% Return in Past Year

When you buy shares in a company, there is always a risk that the price will drop to zero. But if you choose the right stock, you can save a lot Following that 100%. For example, the Ainsworth Game Technology Limited (ASX: AGI) the share price had more than doubled in just one year, up 247%. It’s also good to see the stock price rise 19% in the last quarter. Also impressive, the stock is up 71% over three years, also to the delight of long-term shareholders.

Now, it’s worth looking at the fundamentals of the business as well, as this will help us determine whether the long-term return to the shareholder matches the performance of the underlying business.

Check out our latest review for Ainsworth Game Technology

As Ainsworth Game Technology has recorded a loss over the past twelve months, we believe the market is likely more focused on revenue and revenue growth, at least for now. Generally speaking, companies with no profits are expected to increase their income every year, and at a good rate. Some companies are ready to postpone profitability to increase their revenue faster, but in this case, good revenue growth is expected.

Over the past twelve months, Ainsworth Game Technology’s revenue has grown 6.8%. It’s not great considering the company is losing money. So we wouldn’t have expected the share price to rise 247%. The business will need a lot more growth to justify this increase. It is highly likely that the market is considering other factors, not just revenue growth.

The image below shows how revenue and income have tracked over time (if you click on the image you can see more details).

profit and revenue growth

This free interactive report on Ainsworth Game Technology balance sheet strength is a great place to start if you want to dig deeper into your stock research.

A different perspective

It is nice to see that Ainsworth Game Technology shareholders have received a total shareholder return of 247% over the past year. There is no doubt that these recent returns are much better than the TSR’s loss of 6% per annum over five years. It makes us a little suspicious, but the company may have changed course. Shareholders might want to consider this detailed historical chart past earnings, income and cash flow.

But beware : Ainsworth Game Technology May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with past earnings growth (and new growth forecasts).

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on AU stock exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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