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Greenlane Renewables (TSE:GRN) shareholder returns have been enviable, earning 356% in 3 years

Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. You won't get it right every time, but when you do, the returns can be truly splendid. One such superstar is Greenlane Renewables Inc. (TSE:GRN), which saw its share price soar 356% in three years. In more good news, the share price has risen 39% in thirty days. We note that Greenlane Renewables reported its financial results recently; luckily, you can catch up on the latest revenue and profit numbers in our company report.

Since the stock has added CA$15m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

See our latest analysis for Greenlane Renewables

Because Greenlane Renewables 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. 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.

In the last 3 years Greenlane Renewables saw its revenue grow at 75% per year. That's well above most pre-profit companies. And it's not just the revenue that is taking off. The share price is up 66% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like Greenlane Renewables can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

Greenlane Renewables is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think Greenlane Renewables will earn in the future (free analyst consensus estimates)

A Different Perspective

Greenlane Renewables shareholders are down 41% for the year, but the broader market is up 3.2%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. Fortunately the longer term story is brighter, with total returns averaging about 66% per year over three years. The recent sell-off could be an opportunity if the business remains sound, so it may be worth checking the fundamental data for signs of a long-term growth trend. If you would like to research Greenlane Renewables in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

Of course Greenlane Renewables 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.

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

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.

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