While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. While not every stock performs well, when investors win, they can win big. For example, the Solar Alliance Energy Inc. (CVE:SOLR) share price is up a whopping 717% in the last year, a handsome return in a single year. Better yet, the share price has gained 717% in the last quarter. And shareholders have also done well over the long term, with an increase of 345% in the last three years.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Because Solar Alliance Energy 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Solar Alliance Energy grew its revenue by 163% last year. That's a head and shoulders above most loss-making companies. But the share price has really rocketed in response gaining 717% as previously mentioned. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. So this looks like a great watchlist candidate for investors who look for high growth inflexion points.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Solar Alliance Energy's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that Solar Alliance Energy has rewarded shareholders with a total shareholder return of 717% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 30% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Solar Alliance Energy better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 6 warning signs for Solar Alliance Energy (of which 2 are concerning!) you should know about.
Of course Solar Alliance Energy may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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. 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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