Datametrex AI Limited (CVE:DM) shareholders have seen the share price descend 14% over the month. But that isn't a problem when you consider how the share price has soared over the last year. Indeed, the share price is up a whopping 860% in that time. Arguably, the recent fall is to be expected after such a strong rise. While winners often keep winning, it can pay to be cautious after a strong rise.
Anyone who held for that rewarding ride would probably be keen to talk about it.
Datametrex AI isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Datametrex AI grew its revenue by 190% last year. That's a head and shoulders above most loss-making companies. But the share price seems headed to the moon, up 860% as previously highlighted. Even the most bullish shareholders might be thinking that the share price might drop back a bit, after a gain like that. But if the share price does moderate a bit, there might be an opportunity for high growth investors.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on Datametrex AI's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
Pleasingly, Datametrex AI's total shareholder return last year was 860%. That's better than the annualized TSR of 23% over the last three years. Given the track record of solid returns over varying time frames, it might be worth putting Datametrex AI on your watchlist. 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 learn about the 5 warning signs we've spotted with Datametrex AI (including 1 which makes us a bit uncomfortable) .
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 CA exchanges.
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