Yahoo Finance Despite lower earnings than five years ago, PaySign (NASDAQ:PAYS) investors are up 305% since then
The PaySign, Inc. (NASDAQ:PAYS) share price has had a bad week, falling 10%. But that does not change the realty that the stock's performance has been terrific, over five years. To be precise, the stock price is 305% higher than it was five years ago, a wonderful performance by any measure. So we don't think the recent decline in the share price means its story is a sad one. Only time will tell if there is still too much optimism currently reflected in the share price. While the returns over the last 5 years have been good, we do feel sorry for those shareholders who haven't held shares that long, because the share price is down 74% in the last three years.
In light of the stock dropping 10% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return.
See our latest analysis for PaySign
While PaySign made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last 5 years PaySign saw its revenue grow at 11% per year. That's a fairly respectable growth rate. Arguably it's more than reflected in the very strong share price gain of 32% a year over a half a decade. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We know that PaySign has improved its bottom line lately, but what does the future have in store? So it makes a lot of sense to check out what analysts think PaySign will earn in the future (free profit forecasts).
A Different Perspective
We're pleased to report that PaySign shareholders have received a total shareholder return of 42% over one year. That gain is better than the annual TSR over five years, which is 32%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on PaySign it might be wise to click here to see if insiders have been buying or selling shares.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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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.
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