Swelling losses haven't held back gains for Meshek Energy - Renewable Energies (TLV:MSKE) shareholders since they're up 227% over 1 year

Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Meshek Energy - Renewable Energies Ltd. (TLV:MSKE) share price had more than doubled in just one year - up 227%. It's also good to see the share price up 28% over the last quarter. But this move may well have been assisted by the reasonably buoyant market (up 13% in 90 days). And shareholders have also done well over the long term, with an increase of 83% in the last three years.

Although Meshek Energy - Renewable Energies has shed ₪277m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

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Meshek Energy - Renewable Energies 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. 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.

Over the last twelve months, Meshek Energy - Renewable Energies' revenue grew by 38%. We respect that sort of growth, no doubt. While that revenue growth is pretty good the share price performance outshone it, with a lift of 227% as mentioned above. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling Meshek Energy - Renewable Energies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Meshek Energy - Renewable Energies shareholders have received a total shareholder return of 227% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 14% 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 Meshek Energy - Renewable Energies better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 2 warning signs with Meshek Energy - Renewable Energies (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

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