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If You Had Bought Solar Alliance Energy (CVE:SOLR) Shares A Year Ago You'd Have Earned 820% Returns

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Solar Alliance Energy Inc. (CVE:SOLR) shareholders might understandably be very concerned that the share price has dropped 39% in the last quarter. But over the last year the share price has taken off like one of Elon Musk's rockets. Few could complain about the impressive 820% rise, throughout the period. So it is not that surprising to see the stock retrace a little. Of course, winners often do keep winning, so there may be more gains to come (if the business fundamentals stack up).

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

See our latest analysis for Solar Alliance Energy

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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year Solar Alliance Energy saw its revenue grow by 32%. That's a fairly respectable growth rate. But the market is even more excited about it, with the price apparently bound for the moon, up 820% in one of earth's orbits. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at Solar Alliance Energy.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

This free interactive report on Solar Alliance Energy's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Solar Alliance Energy shareholders have received a total shareholder return of 820% over the last year. That gain is better than the annual TSR over five years, which is 27%. Therefore it seems like sentiment around the company has been positive lately. 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. For instance, we've identified 5 warning signs for Solar Alliance Energy (1 doesn't sit too well with us) that you should be aware of.

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.

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.

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