If You Had Bought Kontrol Energy (CSE:KNR) Stock A Year Ago, You Could Pocket A 307% Gain Today

Kontrol Energy Corp. (CSE:KNR) shareholders might be rather concerned because the share price has dropped 48% in the last month. But that cannot eclipse the spectacular share price rise we've seen over the last twelve months. In fact, it is up 307% in that time. So the recent fall isn't enough to negate the good performance. Only time will tell if there is still too much optimism currently reflected in the share price.

View our latest analysis for Kontrol Energy

Kontrol Energy 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Kontrol Energy actually shrunk its revenue over the last year, with a reduction of 15%. So it's very confusing to see that the share price gained a whopping 307%. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. To us, a gain like this looks like speculation, but there might be historical trends to back it up.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Kontrol Energy rewarded shareholders with a total shareholder return of 307% over the last year. So this year's TSR was actually better than the three-year TSR (annualized) of 51%. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Kontrol Energy better, we need to consider many other factors. To that end, you should be aware of the 4 warning signs we've spotted with Kontrol Energy .

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 CA exchanges.

If you’re looking to trade Kontrol Energy, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.