Shareholders have faith in loss-making Meshek Energy - Renewable Energies (TLV:MSKE) as stock climbs 11% in past week, taking one-year gain to 20%

There's no doubt that investing in the stock market is a truly brilliant way to build wealth. But if when you choose to buy stocks, some of them will be below average performers. Over the last year the Meshek Energy - Renewable Energies Ltd. (TLV:MSKE) share price is up 20%, but that's less than the broader market return. Meshek Energy - Renewable Energies hasn't been listed for long, so it's still not clear if it is a long term winner.

The past week has proven to be lucrative for Meshek Energy - Renewable Energies investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for Meshek Energy - Renewable Energies

Given that Meshek Energy - Renewable Energies 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Meshek Energy - Renewable Energies grew its revenue by 262% last year. That's a head and shoulders above most loss-making companies. Let's face it the 20% share price gain in that time is underwhelming compared to the growth. When revenue spikes but the share price doesn't we can't help wondering if the market is missing something. It could be that the stock was previously over-hyped, or that losses are causing concern for the market, but this could be an opportunity.

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 happy to report that Meshek Energy - Renewable Energies are up 20% over the year. Unfortunately this falls short of the market return of around 39%. The stock trailed the market by 0.09% in that time, testament to the power of passive investing. But a weak quarter certainly doesn't diminish the longer-term achievements of the business. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Meshek Energy - Renewable Energies has 2 warning signs we think you should be aware of.

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 IL exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.