Stock pickers are generally looking for stocks that will outperform the broader market. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, long term Bradaverse Education (Int’l) Investments Group Limited (HKG:1082) shareholders have enjoyed a 59% share price rise over the last half decade, well in excess of the market decline of around 7.7% (not including dividends).
The past week has proven to be lucrative for Bradaverse Education (Int’l) Investments Group investors, so let’s see if fundamentals drove the company’s five-year performance.
View our latest analysis for Bradaverse Education (Int’l) Investments Group
Because Bradaverse Education (Int’l) Investments Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn’t make profits, we’d generally hope to see good revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
For the last half decade, Bradaverse Education (Int’l) Investments Group can boast revenue growth at a rate of 0.07% per year. Put simply, that growth rate fails to impress. While it’s hard to say just how much value the company added over five years, the annualised share price gain of 10% seems about right. The business could be one worth watching but we generally prefer faster revenue growth.
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Bradaverse Education (Int’l) Investments Group’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
While the broader market gained around 4.8% in the last year, Bradaverse Education (Int’l) Investments Group shareholders lost 0.6%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 10% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. You could get a better understanding of Bradaverse Education (Int’l) Investments Group’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Of course Bradaverse Education (Int’l) Investments Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Hong Kong exchanges.
Valuation is complex, but we’re helping make it simple.
Find out whether Bradaverse Education (Int’l) Investments Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
