The METabolic EXplorer (EPA:METEX) Share Price Has Soared 428%, Delighting Many Shareholders

While some are satisfied with an index fund, active investors aim to find truly magnificent investments on the stock market. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, the METabolic EXplorer S.A. (EPA:METEX) share price rocketed moonwards 428% in just one year. Also pleasing for shareholders was the 155% gain in the last three months. It is also impressive that the stock is up 159% over three years, adding to the sense that it is a real winner.

View our latest analysis for METabolic EXplorer

METabolic EXplorer wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year METabolic EXplorer saw its revenue shrink by 19%. So it's very confusing to see that the share price gained a whopping 428%. 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.

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 METabolic EXplorer's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that METabolic EXplorer has rewarded shareholders with a total shareholder return of 428% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 24% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this 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 METabolic EXplorer better, we need to consider many other factors. Take risks, for example - METabolic EXplorer has 4 warning signs we think you should be aware of.

But note: METabolic EXplorer 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 FR 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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