Artivion (NYSE:AORT) delivers shareholders splendid 111% return over 1 year, surging 5.7% in the last week alone

Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Artivion, Inc. (NYSE:AORT) share price has soared 111% in the last 1 year. Most would be very happy with that, especially in just one year! We note the stock price is up 5.7% in the last seven days. The longer term returns have not been as good, with the stock price only 28% higher than it was three years ago.

Since the stock has added US$61m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Artivion

Because Artivion 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Artivion saw its revenue grow by 15%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 111%. Given that the business has made good progress on the top line, it would be worth taking a look at its path to profitability. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

Take a more thorough look at Artivion's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Artivion has rewarded shareholders with a total shareholder return of 111% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 2% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Case in point: We've spotted 2 warning signs for Artivion you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American 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.