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Buying shares in the best businesses can build meaningful wealth for you and your family. And we’ve seen some truly amazing gains over the years. Just think about the savvy investors who held Phoslock Environmental Technologies Limited (ASX:PET) shares for the last five years, while they gained 4217%. This just goes to show the value creation that some businesses can achieve. Also pleasing for shareholders was the 250% gain in the last three months.
It really delights us to see such great share price performance for investors.
Because Phoslock Environmental Technologies is loss-making, 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 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 5 years Phoslock Environmental Technologies saw its revenue grow at 66% per year. That’s well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 112% per year in that time. It’s never too late to start following a top notch stock like Phoslock Environmental Technologies, since some long term winners go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
Take a more thorough look at Phoslock Environmental Technologies’s financial health with this free report on its balance sheet.
A Different Perspective
It’s good to see that Phoslock Environmental Technologies has rewarded shareholders with a total shareholder return of 220% in the last twelve months. That gain is better than the annual TSR over five years, which is 112%. 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 Phoslock Environmental Technologies in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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 firstname.lastname@example.org. 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.