Stock Analysis

Investors bid BIGG Digital Assets (CSE:BIGG) up CA$14m despite increasing losses YoY, taking three-year CAGR to 114%

Source: Shutterstock

Investing can be hard but the potential fo an individual stock to pay off big time inspires us. Mistakes are inevitable, but a single top stock pick can cover any losses, and so much more. One bright shining star stock has been BIGG Digital Assets Inc. (CSE:BIGG), which is 886% higher than three years ago. On top of that, the share price is up 33% in about a quarter. It really delights us to see such great share price performance for investors.

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

See our latest analysis for BIGG Digital Assets

Because BIGG Digital Assets 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.

BIGG Digital Assets' revenue trended up 76% each year over three years. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 114% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like BIGG Digital Assets can sometimes sustain strong growth for many years. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.

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

CNSX:BIGG Earnings and Revenue Growth March 15th 2023

Take a more thorough look at BIGG Digital Assets' financial health with this free report on its balance sheet.

A Different Perspective

We regret to report that BIGG Digital Assets shareholders are down 56% for the year. Unfortunately, that's worse than the broader market decline of 5.9%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that BIGG Digital Assets is showing 5 warning signs in our investment analysis , and 2 of those are significant...

For those who like to find winning investments this free list of growing 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 Canadian exchanges.

Valuation is complex, but we're helping make it simple.

Find out whether BIGG Digital Assets is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis