Bytes Technology Group's (LON:BYIT) one-year earnings growth trails the notable shareholder returns
These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But you can significantly boost your returns by picking above-average stocks. For example, the Bytes Technology Group plc (LON:BYIT) share price is up 71% in the last 1 year, clearly besting the market return of around 11% (not including dividends). So that should have shareholders smiling. We'll need to follow Bytes Technology Group for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Since it's been a strong week for Bytes Technology Group shareholders, let's have a look at trend of the longer term fundamentals.
Check out our latest analysis for Bytes Technology Group
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Bytes Technology Group was able to grow EPS by 22% in the last twelve months. The share price gain of 71% certainly outpaced the EPS growth. This indicates that the market is now more optimistic about the stock. The fairly generous P/E ratio of 60.58 also points to this optimism.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
We know that Bytes Technology Group has improved its bottom line lately, but is it going to grow revenue? You could check out this free report showing analyst revenue forecasts.
A Different Perspective
Bytes Technology Group boasts a total shareholder return of 72% for the last year (that includes the dividends) . The more recent returns haven't been as impressive as the longer term returns, coming in at just 3.5%. Having said that, we doubt shareholders would be concerned. It seems the market is simply waiting on more information, because if the business delivers so will the share price (eventually). While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Bytes Technology Group that you should be aware of before investing here.
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 GB 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.
