The simplest way to invest in stocks is to buy exchange traded funds. But investors can boost returns by picking market-beating companies to own shares in. To wit, the The Artisanal Spirits Company plc (LON:ART) share price is 22% higher than it was a year ago, much better than the market decline of around 0.3% (not including dividends) in the same period. So that should have shareholders smiling. We’ll need to follow Artisanal Spirits for a while to get a better sense of its share price trend, since it hasn’t been listed for particularly long.
Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.
Check out our latest analysis for Artisanal Spirits
Because Artisanal Spirits 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 expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Artisanal Spirits’ revenue grew by 19%. That’s a fairly respectable growth rate. Buyers pushed the share price 22% in response, which isn’t unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But it’s crucial to check profitability and cash flow before forming a view on the future.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling Artisanal Spirits stock, you should check out this FREE detailed report on its balance sheet.
Artisanal Spirits boasts a total shareholder return of 22% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 9.4% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It’s always interesting to track share price performance over the longer term. But to understand Artisanal Spirits better, we need to consider many other factors. Case in point: We’ve spotted 2 warning signs for Artisanal Spirits you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on British exchanges.