Shareholders have faith in loss-making Bioxyne (ASX:BXN) as stock climbs 47% in past week, taking one-year gain to 267%

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. Take, for example Bioxyne Limited (ASX:BXN). Its share price is already up an impressive 267% in the last twelve months. It's up an even more impressive 267% over the last quarter. Also impressive, the stock is up 110% over three years, making long term shareholders happy, too.

The past week has proven to be lucrative for Bioxyne investors, so let's see if fundamentals drove the company's one-year performance.

Check out our latest analysis for Bioxyne

Bioxyne isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope 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 Bioxyne saw its revenue grow by 82%. That's a head and shoulders above most loss-making companies. Meanwhile, the market has paid attention, sending the share price soaring 267% in response. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. Given the positive sentiment around the stock we're cautious, but there's no doubt its worth watching.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Bioxyne's financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Bioxyne shareholders have received a total shareholder return of 267% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 26% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Bioxyne (of which 3 are concerning!) you should know about.

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges.

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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.