Market cap

Artificial Solutions International (STO: ASAI) Adds SEK 57 Million to Market Cap in Past 7 Days, Though Investors from a Year Ago Still Down 31%

Artificial Solutions International AB (publ) (STO: ASAI) Shareholders should be happy to see the stock price rise 12% last week. But that doesn’t change the reality of the past twelve months’ underperformance. In fact, the price has fallen 31% in one year, below the returns you could get by investing in an index fund.

As the stock rose 12% last week but long-term shareholders are still in the red, let’s see what the fundamentals can tell us.

Check out our latest review for Artificial Solutions International

Given that Artificial Solutions International has recorded a loss over the past twelve months, we believe the market is likely more focused on revenue and revenue growth, at least for now. When a business is not making a profit, we generally expect good revenue growth. Some companies are ready to postpone profitability to increase their revenue faster, but in this case, good revenue growth is expected.

Artificial Solutions International’s revenue did not increase at all last year. In fact, it’s down 30%. It looks pretty dark, at a glance. The share price has languished in recent times, falling 31% in one year. What would you expect when the income goes down and it doesn’t generate a profit? It’s hard to escape the conclusion that buyers need to consider either future growth or cost reduction, or both.

Below you can see how earnings and income have evolved over time (find out the exact values ​​by clicking on the image).

OM: ASAI Profits and Revenue Growth October 30, 2021

We consider it positive that insiders have made significant purchases over the past year. Even so, future profits will be much more important to whether current shareholders make money. So we recommend you to check this free report showing consensus forecasts

A different perspective

Given that the market has gained 46% in the past year, shareholders of Artificial Solutions International might be sorry they lost 31%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Aside from the past twelve months, it’s good to see that the stock price has rebounded 5.5%, over the past ninety days. It might just be a rebound because the sell was too aggressive, but fingers crossed this is the start of a new trend. While it is worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for example. Every business has them, and we’ve spotted 4 warning signs for Artificial Solutions International you should know.

There are many other companies that have insiders who buy stocks. You probably do not want to miss it free list of growing companies that insiders buy.

Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks that currently trade on the SE exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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