If You Had Bought AnalytixInsight (CVE:ALY) Stock Five Years Ago, You Could Pocket A 413% Gain Today

Long term investing can be life changing when you buy and hold the truly great businesses. While the best companies are hard to find, but they can generate massive returns over long periods. Just think about the savvy investors who held AnalytixInsight Inc. (CVE:ALY) shares for the last five years, while they gained 413%. If that doesn't get you thinking about long term investing, we don't know what will. On top of that, the share price is up 46% in about a quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

Check out our latest analysis for AnalytixInsight

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

For the last half decade, AnalytixInsight can boast revenue growth at a rate of 28% per year. Even measured against other revenue-focussed companies, that's a good result. Fortunately, the market has not missed this, and has pushed the share price up by 39% per year in that time. It's never too late to start following a top notch stock like AnalytixInsight, 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.

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

If you are thinking of buying or selling AnalytixInsight stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that AnalytixInsight shareholders have received a total shareholder return of 67% over one year. That gain is better than the annual TSR over five years, which is 39%. 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. 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. To that end, you should be aware of the 4 warning signs we've spotted with AnalytixInsight .

But note: AnalytixInsight may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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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.
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