AVITA Therapeutics (ASX:AVH) Has Rewarded Shareholders With An Exceptional 524% Total Return On Their Investment

ASX:AVH) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 26% in the last quarter. But over three years the performance has been really wonderful. In fact, the share price has taken off in that time, up 457%. As long term investors the recent fall doesn’t detract all that much from the longer term story. Only time will tell if there is still too much optimism currently reflected in the share price.” data-reactid=”28″>While AVITA Therapeutics, Inc. (ASX:AVH) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 26% in the last quarter. But over three years the performance has been really wonderful. In fact, the share price has taken off in that time, up 457%. As long term investors the recent fall doesn’t detract all that much from the longer term story. Only time will tell if there is still too much optimism currently reflected in the share price.

Check out our latest analysis for AVITA Therapeutics ” data-reactid=”29″> Check out our latest analysis for AVITA Therapeutics

Because AVITA Therapeutics 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

AVITA Therapeutics’ revenue trended up 96% each year over three years. That’s well above most pre-profit companies. And it’s not just the revenue that is taking off. The share price is up 77% per year in that time. Despite the strong run, top performers like AVITA Therapeutics have been known to go on winning for decades. So we’d recommend you take a closer look at this one, or even put it on your watchlist.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

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report on its balance sheet.” data-reactid=”49″>Take a more thorough look at AVITA Therapeutics’ financial health with this free report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We’ve already covered AVITA Therapeutics’ share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. We note that AVITA Therapeutics’ TSR, at 524% is higher than its share price return of 457%. When you consider it hasn’t been paying a dividend, this data suggests shareholders have benefitted from a spin-off, or had the opportunity to acquire attractively priced shares in a discounted capital raising.

A Different Perspective

3 warning signs for AVITA Therapeutics you should know about.” data-reactid=”53″>While the broader market lost about 6.5% in the twelve months, AVITA Therapeutics shareholders did even worse, losing 28%. Having said that, it’s inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. On the bright side, long term shareholders have made money, with a gain of 42% 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Consider risks, for instance. Every company has them, and we’ve spotted 3 warning signs for AVITA Therapeutics you should know about.

list of growing companies with considerable, recent, insider buying.” data-reactid=”54″>We will like AVITA Therapeutics better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.