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Investors Who Bought AnalytixInsight (CVE:ALY) Shares Three Years Ago Are Now Up 50%

By buying an index fund, you can roughly match the market return with ease. But many of us dare to dream of bigger returns, and build a portfolio ourselves. Just take a look at AnalytixInsight Inc. (CVE:ALY), which is up 50%, over three years, soundly beating the market return of 16% (not including dividends).

See our latest analysis for AnalytixInsight

Given that AnalytixInsight 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. Shareholders of unprofitable companies usually expect 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.

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AnalytixInsight's revenue trended up 84% each year over three years. That's much better than most loss-making companies. The share price rise of 14% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at AnalytixInsight. A window of opportunity may reveal itself with time, if the business can trend to profitability.

The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.

TSXV:ALY Income Statement, April 24th 2019
TSXV:ALY Income Statement, April 24th 2019

If you are thinking of buying or selling AnalytixInsight stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 7.8% in the last year, AnalytixInsight shareholders lost 23%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.9% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Before spending more time on AnalytixInsight it might be wise to click here to see if insiders have been buying or selling shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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