One-Week Return Of 8.5% Takes NX Filtration's Shareholders' One-Year Gains To 14%

The simplest way to invest in stocks is to buy exchange traded funds. But if you pick the right individual stocks, you could make more than that. For example, the NX Filtration N.V. (AMS:NXFIL) share price is up 14% in the last 1 year, clearly besting the market decline of around 11% (not including dividends). So that should have shareholders smiling. NX Filtration 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 NX Filtration investors, so let's see if fundamentals drove the company's one-year performance.

See our latest analysis for NX Filtration

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

In the last year NX Filtration saw its revenue grow by 286%. That's well above most other pre-profit companies. While the share price gain of 14% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at NX Filtration. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

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

It's nice to see that NX Filtration shareholders have gained 14% over the last year. A substantial portion of that gain has come in the last three months, with the stock up 25% in that time. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Even so, be aware that NX Filtration is showing 1 warning sign in our investment analysis , you should know about...

We will like NX Filtration better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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