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The Carl Data Solutions (FRA:7C5) Share Price Has Gained 91% And Shareholders Are Hoping For More

The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the Carl Data Solutions Inc. (FRA:7C5) share price is up 91% in the last year, clearly besting the market return of around 8.8% (not including dividends). That's a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 53% lower than it was three years ago.

See our latest analysis for Carl Data Solutions

Given that Carl Data Solutions 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

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In the last year Carl Data Solutions saw its revenue grow by 31%. That's a fairly respectable growth rate. Buyers pushed the share price 91% in response, which isn't unreasonable. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

DB:7C5 Income Statement, November 14th 2019
DB:7C5 Income Statement, November 14th 2019

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free interactive report on Carl Data Solutions's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Carl Data Solutions shareholders have gained 91% (in total) over the last year. This recent result is much better than the 23% drop suffered by shareholders each year (on average) over the last three. It could well be that the business has turned around -- or else regained the confidence of investors. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

We will like Carl Data Solutions better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.