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EcoSynthetix's (TSE:ECO) growing losses don't faze investors as the stock pops 11% this past week

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The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But if you buy shares in a really great company, you can more than double your money. For example, the EcoSynthetix Inc. (TSE:ECO) share price has soared 202% in the last three years. How nice for those who held the stock! In more good news, the share price has risen 16% in thirty days. This could be related to the recent financial results that were recently released - you could check the most recent data by reading our company report.

Since it's been a strong week for EcoSynthetix shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for EcoSynthetix

Given that EcoSynthetix 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years EcoSynthetix saw its revenue shrink by 17% per year. So the share price gain of 45% per year is quite surprising. It's a good reminder that expectations about the future, not the past history, always impact share prices.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

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

A Different Perspective

It's good to see that EcoSynthetix has rewarded shareholders with a total shareholder return of 94% in the last twelve months. That's better than the annualised return of 22% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. Before spending more time on EcoSynthetix it might be wise to click here to see if insiders have been buying or selling shares.

We will like EcoSynthetix 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 CA exchanges.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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