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Hot Money Monday: Elsight's hot streak continues as Halo becomes a battlefield essential
Hot Money Monday: Elsight's hot streak continues as Halo becomes a battlefield essential

News.com.au

time21 hours ago

  • Business
  • News.com.au

Hot Money Monday: Elsight's hot streak continues as Halo becomes a battlefield essential

Elsight soars as defence tech takes the spotlight Halo racks up $22.9m in deals from one customer alone Battle-tested comms box becomes must-have for drones With tensions between Iran and Israel at boiling point, defence tech is once again back in the spotlight. And if you've been watching the ASX small cap space over the past month, you'll know Elsight (ASX:ELS) has been on an absolute tear. The stock has been a standout tech performer, up by 140% in the last 30 days. And it's not without reason. While some stocks rally on hype, Elsight's run is being driven by something much more tangible: contracts. Real ones. Deals that add zeroes to revenues and turn defence buyers into repeat customers. Driving all this momentum is its flagship, Halo – a smart little box that's quickly becoming the must-have nervous system for unmanned defence platforms across the globe. Halo isn't a drone. It doesn't fly, shoot or spy. What it does is make sure everything that does fly, shoot or spy stays connected. For autonomous systems, especially Beyond Visual Line of Sight (BVLOS) missions, stable, real-time communication is everything. Drop the link and it's game over, literally. Halo solves that problem. It's a compact, lightweight, carrier-agnostic connectivity device that blends 4G, 5G, satellite, and radio frequency links into one seamless, always-on connection. If one network drops out, Halo reroutes traffic across another before anyone even notices. And it doesn't just react, it predicts. Thanks to what Elsight calls its '6th Sense' AI, the system constantly monitors signal quality and reroutes data in real-time to avoid interruptions. And the tech is battle-proven. Halo has clocked over 200,000 flight hours, with its AES-256 encryption ensuring secure, mission-critical comms. In contested environments, where reliability and cybersecurity are non-negotiable, Halo has earned its stripes. So it's no surprise defence customers are doubling, even tripling, down. Winning deals Since March, Elsight has been stacking contract wins, all with one European defence OEM. What started as a modest production order of around US$300,000 has now exploded into a full-blown rollout across 2025. That first March deal was the warm-up. Then came a US$4.28 million order in April, followed by US$5.35 million in May. And on June 4, Elsight locked in another US$5.08 million, bringing the total 2025 commitment from this single customer to US$14.7 million, or around $22.9 million. That's a sixfold jump on last year's revenue, all from one relationship that's still growing. 'This new order is an even stronger signal of market validation, not only from our direct customer but from the multiple defence end-users now relying on Halo across operational theatres,' said Yoav Amitai, the CEO of Elsight. But this isn't just a one-off spike or some flashy headline. The OEM is buying more Halo units because their own clients are stacking up; each new downstream customer is demanding Halo installed into their unmanned systems. And that kind of momentum feeds itself. The more platforms Halo lands on, the more entrenched it becomes. And in defence, once your tech is trusted and embedded, it tends to stay put for a long, long time. Battlefield proven The macro picture supports this shift too. Modern warfare is increasingly being shaped by unmanned platforms. They're cheaper, faster, and can go where humans can't. They're immune to fatigue, unaffected by G-forces, and don't come with the political baggage of sending soldiers into harm's way. But all of that hinges on one simple truth - you need a rock-solid, always-on link between the platform and the operator. Lose that, and your cutting-edge drone is just a fancy brick falling out of the sky. 'As our technology proves how it enables mission success, it spreads," said Amitai. 'This battlefield-proof growth reflects the deep confidence partners place in Elsight's ability to deliver resilient, always-on connectivity for the most demanding unmanned applications in contested environments.' Other ASX defence-related stocks Code Name Last Month change Year change Market Cap ELS Elsight Ltd 1.350 141% 193% $245,350,635 EOS Electro Optic Sys. 2.790 89% 111% $538,336,356 1CG One Click Group Ltd 0.009 50% -10% $10,600,919 DRO Droneshield Limited 1.810 47% 16% $1,582,915,326 HCL Highcom Ltd 0.240 30% 78% $24,643,841 ASB Austal Limited 6.240 28% 164% $2,628,163,475 3DA Amaero Ltd 0.340 26% -11% $234,735,550 OEC Orbital Corp Limited 0.110 18% 26% $18,125,769 CDA Codan Limited 19.700 16% 73% $3,576,945,587 BCT Bluechiip Limited 0.003 0% -25% $3,616,878 TTT Titomic Limited 0.290 -2% 258% $384,469,935 BIS Bisalloy Steel 3.260 -3% -17% $156,165,739 BRN Brainchip Ltd 0.205 -7% -5% $415,277,056 AL3 Aml3D 0.135 -10% 108% $72,594,980 AJX Alexium Int Group 0.007 -13% -30% $11,105,001 DroneShield (ASX:DRO) builds the tech that spots rogue drones and knocks them out of the sky. Used by militaries, airports, and critical infrastructure, it's a modern-day drone alarm system, supercharged with AI wizardry. Electro Optic Systems (ASX:EOS) designs remote-controlled weapons and high-tech optical gear for defence and space. If you've seen those gun turrets that track targets automatically – yep, that's them. Orbital Corporation (ASX:OEC) makes the engines that keep tactical drones in the air. Based in WA but supplying the US defence market, its job is to make sure these little aircraft fly further, longer, and without fail.

ASX tech May winners: Silicon surge sends Aussie tech sector skyward by 22pc
ASX tech May winners: Silicon surge sends Aussie tech sector skyward by 22pc

Mercury

time03-06-2025

  • Business
  • Mercury

ASX tech May winners: Silicon surge sends Aussie tech sector skyward by 22pc

ASX tech stocks roared back to life in May, riding a wave of global AI hype, easing trade tensions, and strong earnings. Don't miss out on the headlines from Stockhead. Followed categories will be added to My News. ASX tech rockets 22pc in May Earnings from tech's 'Magnificent 7' helped matters Elsight, Eroad, Etherstack and Yojee were notable gainers The ASX tech sector didn't just rally in May, it rocketed. Up more than 22%, it was one of the biggest monthly leaps in recent memory, outpacing every other sector on the index and riding a wave of global tailwinds that swept through Wall Street and into Martin Place. May performance by sector So what lit the rocket under Aussie tech? Well, a combo of softening US-China trade tensions, a rate cut by the RBA, and red-hot earnings from the global tech elite – all wrapped in a volatile month where every diplomatic handshake or tariff tweet sent markets bouncing. Wall Street turns silicon slick Over in the US, it was an AI-fuelled tech fest. The Nasdaq jumped 9.5% in May, its best showing since November last year. The S&P 500 had a solid 6.15% lift, and the Dow chipped in with a 4% gain. The key driver was de-escalation. Starting May 14, Washington slashed tariffs on Chinese goods from 145% to 30%. Beijing responded by trimming its own to 10%. Also, earnings from the 'Magnificent Seven' – Microsoft, Nvidia, Apple, Alphabet, Amazon, Meta, and Tesla – blew past expectations. According to FactSet, their collective Q1 earnings grew 27.7%, smashing estimates and fuelling confidence in AI, cloud, and consumer spending. But the mood wasn't all champagne and confetti. Trump reignited tariff threats by month's end, accusing China of dragging its feet on export compliance, especially around rare earths. The backpedalling stirred new worries, but not enough to undo the market's momentum. Confidence is back, at least for now. And when global investors are feeling bold, ASX tech stocks often get caught in the updraft. ASX tech winners in May Code Name Price Month % Change Market Cap 4DS 4Ds Memory Limited 0.059 97% $118,137,090 ELS Elsight Ltd 0.770 71% $139,940,732 ERD Eroad Limited 1.390 65% $260,500,778 ESK Etherstack PLC 0.440 54% $58,155,681 YOJ Yojee Limited 0.270 54% $86,413,050 360 Life360 Inc. 33.330 52% $5,806,753,611 EOS Electro Optic Sys. 1.845 51% $355,996,623 CAT Catapult Grp Int Ltd 5.850 43% $1,427,690,903 XPN Xpon Technologies 0.010 43% $4,142,532 SPX Spenda Limited 0.007 40% $32,306,508 VNL Vinyl Group Ltd 0.130 38% $163,717,420 TNE Technology One 41.060 37% $13,346,815,417 RCL Readcloud 0.135 35% $20,738,668 DCC Digitalx Limited 0.070 35% $84,253,672 W2V Way2Vatltd 0.008 33% $11,302,865 VIG Victor Group Hldgs 0.082 32% $53,482,587 GTI Gratifii 0.099 32% $33,540,151 JCS Jcurve Solutions 0.033 32% $10,901,333 AI1 Adisyn Ltd 0.066 32% $47,726,289 AD8 Audinate Group Ltd 7.950 29% $658,524,993 IKE Ikegps Group Ltd 0.920 29% $148,177,677 CGO CPT Global Limited 0.063 26% $2,639,534 SMP Smartpay Holdings 0.945 25% $227,426,856 NVU Nanoveu Limited 0.048 23% $38,578,586 OCL Objective Corp 19.230 23% $1,838,200,431 VR1 Vection Technologies 0.022 22% $38,878,882 ASV Assetvisonco 0.039 22% $28,835,101 BCC Beam Communications 0.120 21% $10,370,631 WTC Wisetech Global Ltd 107.150 21% $36,396,942,187 FL1 First Lithium Ltd 0.078 20% $6,212,981 OAK Oakridge 0.072 20% $1,943,849 MP1 Megaport Limited 13.520 18% $2,242,455,288 SP3 Specturltd 0.013 18% $4,005,952 EOL Energy One Limited 14.750 18% $462,123,149 XF1 Xref Limited 0.135 17% $29,712,118 EVS Envirosuite Ltd 0.084 17% $121,691,110 SLX Silex Systems 3.600 17% $802,416,290 BVS Bravura Solution Ltd 2.550 16% $1,143,302,705 EML EML Payments Ltd 1.130 16% $431,773,255 CDA Codan Limited 18.000 14% $3,237,408,113 DTI DTI Group Ltd 0.007 14% $3,139,860 RDY Readytech Holdings 2.380 13% $290,693,379 OLL Openlearning 0.017 13% $8,205,469 AXE Archer Materials 0.300 13% $76,454,104 ID8 Identitii Limited 0.009 13% $7,002,122 XRO Xero Ltd 184.290 12% $28,534,797,978 RUL Rpmglobal Hldgs Ltd 3.070 12% $686,816,448 HCL Highcom Ltd 0.200 11% $20,536,534 BEO Beonic Ltd 0.200 11% $14,172,202 NXT Nextdc Limited 13.110 11% $8,415,067,423 SNS Sensen Networks Ltd 0.031 11% $24,584,162 SMN Structural Monitor. 0.430 10% $66,394,171 RKT Rocketdna Ltd. 0.011 10% $10,070,756 ZMM Zimi Ltd 0.011 10% $4,702,982 TYR Tyro Payments 0.885 10% $467,587,600 AR9 Archtis Limited 0.070 9% $20,157,701 DUG DUG Tech 1.120 9% $150,816,513 IRE IRESS Limited 8.660 9% $1,608,257,371 ROC Rocketboots 0.088 9% $12,815,075 KYP Kinatico Ltd 0.195 8% $84,257,937 SEN Senetas Corporation 0.020 8% $33,120,382 5GN 5G Networks Limited 0.140 8% $41,697,847 COS Cosol Limited 0.785 8% $142,861,205 ODA Orcoda Limited 0.079 7% $14,813,623 IRI Integrated Research 0.440 6% $78,035,192 FCL Fineos Corp Hold PLC 2.320 6% $785,319,223 DXN DXN Limited 0.036 6% $10,753,331 VGL Vista Group Int Ltd 3.470 6% $828,755,302 GTK Gentrack Group Ltd 11.390 5% $1,170,937,010 QOR Qoria Limited 0.415 5% $542,232,890 FLX Felix Group 0.210 5% $42,944,940 XYZ Block Inc 96.510 5% $5,298,308,114 UBN Ltd 0.840 4% $66,058,362 LVE Love Group Global 0.125 4% $5,066,771 ASB Austal Limited 5.520 4% $2,274,372,238 PHX Pharmx Technologies 0.080 4% $47,880,543 PPK PPK Group Limited 0.315 3% $28,605,937 WBT Weebit Nano Ltd 1.820 3% $419,949,381 OEC Orbital Corp Limited 0.092 2% $14,994,954 RKN Reckon Limited 0.490 2% $55,514,468 DTL Data#3 Limited 7.430 2% $1,158,714,331 NXL Nuix Limited 2.480 2% $813,603,994 DSE Dropsuite Ltd 5.880 1% $418,227,407 PRO Prophecy Internation 0.430 1% $31,712,042 Making news for the right reasons or just hitting milestones, here were some of the month's notable gainers… Elsight (ASX:ELS) Elsight's share price ripped higher in May after it secured a second major contract from a European defence drone maker, worth US$5.35m on top of an earlier US$4.28m deal announced in April. That brings the customer's total commitment to US$9.63m, with all units set for delivery this year. Elsight's Halo tech is being embedded into defence drone programs, and more than US$1m of the April order has already been delivered and booked as revenue. On top of that, Elsight was selected by Northrop Grumman for a prestigious US defence accelerator, just 8 companies chosen from over 225 applicants. That program gives it direct access to Northrop's tech and procurement teams, and a fast-track to potential US DoD contracts. Eroad (ASX:ERD) Transport tech firm Eroad surged after delivering a strong FY25 result and setting upbeat guidance for the year ahead. It flipped to a profit, pulled in NZ$16m in free cash flow (a huge jump from NZ$1.3m last year), and saw revenue climb to NZ$194.4m, up nearly 7%. Annual recurring revenue (ARR) also rose to NZ$175.1m. But it was the outlook that really got investors paying attention. Eroad is guiding to FY26 revenue of at least NZ$205m, and ARR of at least NZ$188m, with free cash flow yield of 8–10%. It's also targeting medium-term ARR growth of 11–13%. Etherstack (ASX:ESK) Radio tech firm Etherstack popped in May after locking in a record US$7m in cash receipts for the first half of FY25, its strongest half-year since listing. Most of that came from project revenue already delivered, and it reckons H1 revenue alone could beat all of last year's full result. It's also flagged more big deals likely coming soon from long-term clients, and its recurring revenue from support and 'comms-as-a-service' is steadily growing. All up, investors saw strong cash, solid outlook, and momentum. Yojee (ASX:YOJ) Logistics tech minnow Yojee surged in May off the back of two big catalysts. First, it presented at the IFCBAA national freight conference, putting its next-gen freight forwarding software in front of key industry players. Second, WiseTech's massive $2.1bn acquisition of E2open lit a fire under the whole sector, showing just how hot logistics tech is right now. Now read: WiseTech's $2bn power play, and one small logistics tech stock stirring interest Yojee's building its own momentum too, with an AI assistant baked into its platform, and a pilot deal with global player Röhlig Logistics kicking off in Singapore. All up, investors saw a small-cap riding a big wave, and jumped on board. ASX tech losers in May Code Name Price Month % Change Market Cap DUB Dubber Corp Ltd 0.016 -61% $41,973,880 1TT Thrive Tribe Tech 0.001 -50% $2,031,723 DTZ Dotz Nano Ltd 0.048 -36% $28,323,086 BLG Bluglass Limited 0.011 -31% $22,198,234 FCT Firstwave Cloud Tech 0.013 -28% $22,275,743 OPL Opyl Limited 0.019 -27% $4,464,398 EIQ Echoiq Ltd 0.245 -26% $158,070,989 SIS Simble Solutions 0.003 -25% $2,628,991 BRN Brainchip Ltd 0.205 -24% $435,534,473 SKO Serko 2.720 -22% $338,912,408 SPA Spacetalk Ltd 0.160 -22% $12,395,156 DWG Dataworks Group 0.130 -21% $13,289,126 HTG Harvest Tech Grp Ltd 0.016 -20% $14,335,148 KNO Knosys Limited 0.035 -19% $7,564,854 NOV Novatti Group Ltd 0.022 -19% $11,950,156 RWL Rubicon Water 0.210 -18% $50,545,971 FBR FBR Ltd 0.005 -17% $28,447,261 NOR Norwood Systems Ltd. 0.020 -17% $10,318,553 JAN Janison Edu Group 0.140 -15% $36,384,355 IFG Infocusgroup Hldltd 0.006 -14% $1,574,561 NVQ Noviqtech Limited 0.027 -13% $6,791,487 HYD Hydrix Limited 0.014 -13% $3,818,764 EPX Ept Global Limited 0.023 -12% $15,150,929 AJX Alexium Int Group 0.008 -11% $12,691,429 8CO 8Common Limited 0.016 -11% $3,585,518 IOD Iodm Limited 0.130 -10% $77,070,523 CYB Aucyber Limited 0.080 -10% $16,751,735 3DP Pointerra Limited 0.055 -8% $44,279,224 ACE Acusensus Limited 0.970 -8% $135,825,086 CF1 Complii Fintech Ltd 0.025 -7% $14,284,841 ICE Icetana Limited 0.014 -7% $6,133,997 MX1 Micro-X Limited 0.056 -7% $37,363,326 WHK Whitehawk Limited 0.014 -7% $10,378,849 XRG Xreality Group Ltd 0.030 -6% $19,906,426 SOR Strategic Elements 0.032 -6% $15,236,274 HSN Hansen Technologies 5.100 -6% $1,047,697,081 AT1 Atomo Diagnostics 0.017 -6% $11,321,179 X2M X2M Connect Limited 0.019 -5% $7,375,455 TZL TZ Limited 0.059 -5% $16,556,232 BDT Birddog 0.047 -4% $7,589,843 CXZ Connexion Mobility 0.026 -4% $21,216,424 CML Connected Minerals 0.130 -4% $5,376,568 IFM Infomedia Ltd 1.210 -2% $471,132,514 AVA AVA Risk Group Ltd 0.103 -2% $30,499,563 DDR Dicker Data Limited 8.230 -2% $1,473,911,938 CCR Credit Clear 0.230 -2% $97,669,188 PPS Praemium Limited 0.730 -2% $348,732,077 DRO Droneshield Limited 1.315 -2% $1,127,576,305 ATA Atturralimited 0.860 -2% $328,224,812 CPU Computershare Ltd 40.220 -1% $23,657,729,209 NVX Novonix Limited 0.420 -1% $283,058,021 This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decision. Originally published as ASX tech May winners: Silicon surge sends Aussie tech sector skyward by 22pc Stockhead The S&P/ASX 200 Health Care Index rose 1.59% in May, easing from a 2.16% gain in April but still finishing in the green. Stockhead As tensions rise in the Indo-Pacific, Aussie tech players like Vection, DroneShield and Harvest are quietly stepping into the spotlight

The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%
The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%

Yahoo

time28-05-2025

  • Business
  • Yahoo

The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. One great example is Elsight Limited (ASX:ELS) which saw its share price drive 111% higher over five years. On top of that, the share price is up 82% in about a quarter. The past week has proven to be lucrative for Elsight investors, so let's see if fundamentals drove the company's five-year performance. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Given that Elsight didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last 5 years Elsight saw its revenue grow at 10% per year. That's a fairly respectable growth rate. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 16% per year over five years. It's well worth monitoring the growth trend in revenue, because if growth accelerates, that might signal an opportunity. When a growth trend accelerates, be it in revenue or earnings, it can indicate an inflection point for the business, which is can often be an opportunity for investors. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). This free interactive report on Elsight's balance sheet strength is a great place to start, if you want to investigate the stock further. We've already covered Elsight's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Elsight hasn't been paying dividends, but its TSR of 116% exceeds its share price return of 111%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders. We're pleased to report that Elsight shareholders have received a total shareholder return of 65% over one year. That gain is better than the annual TSR over five years, which is 17%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Case in point: We've spotted 4 warning signs for Elsight you should be aware of, and 1 of them can't be ignored. For those who like to find winning investments this free list of undervalued 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 Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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.

The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%
The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%

Yahoo

time27-05-2025

  • Business
  • Yahoo

The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. One great example is Elsight Limited (ASX:ELS) which saw its share price drive 111% higher over five years. On top of that, the share price is up 82% in about a quarter. The past week has proven to be lucrative for Elsight investors, so let's see if fundamentals drove the company's five-year performance. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Given that Elsight didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last 5 years Elsight saw its revenue grow at 10% per year. That's a fairly respectable growth rate. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 16% per year over five years. It's well worth monitoring the growth trend in revenue, because if growth accelerates, that might signal an opportunity. When a growth trend accelerates, be it in revenue or earnings, it can indicate an inflection point for the business, which is can often be an opportunity for investors. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). This free interactive report on Elsight's balance sheet strength is a great place to start, if you want to investigate the stock further. We've already covered Elsight's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Elsight hasn't been paying dividends, but its TSR of 116% exceeds its share price return of 111%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders. We're pleased to report that Elsight shareholders have received a total shareholder return of 65% over one year. That gain is better than the annual TSR over five years, which is 17%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Case in point: We've spotted 4 warning signs for Elsight you should be aware of, and 1 of them can't be ignored. For those who like to find winning investments this free list of undervalued 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 Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio

The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%
The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%

Yahoo

time27-05-2025

  • Business
  • Yahoo

The 17% return this week takes Elsight's (ASX:ELS) shareholders five-year gains to 116%

When you buy a stock there is always a possibility that it could drop 100%. But on the bright side, you can make far more than 100% on a really good stock. One great example is Elsight Limited (ASX:ELS) which saw its share price drive 111% higher over five years. On top of that, the share price is up 82% in about a quarter. The past week has proven to be lucrative for Elsight investors, so let's see if fundamentals drove the company's five-year performance. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. Given that Elsight didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size. In the last 5 years Elsight saw its revenue grow at 10% per year. That's a fairly respectable growth rate. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 16% per year over five years. It's well worth monitoring the growth trend in revenue, because if growth accelerates, that might signal an opportunity. When a growth trend accelerates, be it in revenue or earnings, it can indicate an inflection point for the business, which is can often be an opportunity for investors. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). This free interactive report on Elsight's balance sheet strength is a great place to start, if you want to investigate the stock further. We've already covered Elsight's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Elsight hasn't been paying dividends, but its TSR of 116% exceeds its share price return of 111%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders. We're pleased to report that Elsight shareholders have received a total shareholder return of 65% over one year. That gain is better than the annual TSR over five years, which is 17%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Case in point: We've spotted 4 warning signs for Elsight you should be aware of, and 1 of them can't be ignored. For those who like to find winning investments this free list of undervalued 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 Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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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