Shareholders Are Raving About How The Green Rise Foods (CVE:GRF) Share Price Increased 590%

For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. For example, the Green Rise Foods Inc. (CVE:GRF) share price is up a whopping 590% in the last year, a handsome return in a single year. It's also good to see the share price up 174% over the last quarter. Note that businesses generally develop over the long term, so the returns over the last year might not reflect a long term trend.

We love happy stories like this one. The company should be really proud of that performance!

See our latest analysis for Green Rise Foods

We don't think that Green Rise Foods' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last year Green Rise Foods saw its revenue shrink by 6.8%. This is in stark contrast to the splendorous stock price, which has rocketed 590% since this time a year ago. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. This free interactive report on Green Rise Foods' earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

A Different Perspective

Green Rise Foods boasts a total shareholder return of 590% for the last year. A substantial portion of that gain has come in the last three months, with the stock up 174% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. It's always interesting to track share price performance over the longer term. But to understand Green Rise Foods better, we need to consider many other factors. For instance, we've identified 5 warning signs for Green Rise Foods (2 shouldn't be ignored) that you should be aware of.

Green Rise Foods is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing 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 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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