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Did You Miss Carmanah Technologies's (TSE:CMH) Impressive 177% Share Price Gain?

Simply Wall St

When you buy a stock there is always a possibility that it could drop 100%. But on a lighter note, a good company can see its share price rise well over 100%. One great example is Carmanah Technologies Corporation (TSE:CMH) which saw its share price drive 177% higher over five years. Meanwhile the share price is 4.1% higher than it was a week ago.

See our latest analysis for Carmanah Technologies

Because Carmanah Technologies is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. 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.

For the last half decade, Carmanah Technologies can boast revenue growth at a rate of 7.3% per year. That's a pretty good long term growth rate. We'd argue this growth has been reflected in the share price which has climbed at a rate of 23% per year over in that time. It's well worth monitoring the growth trend in revenue, because if growth accelerates, that might signal an opportunity. Accelerating growth can be a sign of an inflection point - and could indicate profits lie ahead. Worth watching 100%

Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.

TSX:CMH Income Statement, April 24th 2019
TSX:CMH Income Statement, April 24th 2019

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's nice to see that Carmanah Technologies shareholders have received a total shareholder return of 55% over the last year. That gain is better than the annual TSR over five years, which is 23%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. If you would like to research Carmanah Technologies in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

We will like Carmanah Technologies 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.

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.