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Unfortunately, investing is risky – companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the Mach7 Technologies Limited (ASX:M7T) share price has soared 259% in the last year. Most would be very happy with that, especially in just one year! It’s up an even more impressive 275% over the last quarter. It is also impressive that the stock is up 112% over three years, adding to the sense that it is a real winner.
Given that Mach7 Technologies didn’t make a profit in the last twelve months, we’ll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Mach7 Technologies saw its revenue shrink by 11%. So we would not have expected the share price to rise 259%. It just goes to show the market doesn’t always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.
This free interactive report on Mach7 Technologies’s balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We’re pleased to report that Mach7 Technologies rewarded shareholders with a total shareholder return of 259% over the last year. That gain actually surpasses the 28% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Mach7 Technologies on your watchlist. If you would like to research Mach7 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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 email@example.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.