The 13% return this week takes ClearSign Technologies' (NASDAQ:CLIR) shareholders three-year gains to 191%

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you buy shares in a really great company, you can more than double your money. For example, the ClearSign Technologies Corporation (NASDAQ:CLIR) share price has soared 191% in the last three years. That sort of return is as solid as granite. Also pleasing for shareholders was the 101% gain in the last three months. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

The past week has proven to be lucrative for ClearSign Technologies investors, so let's see if fundamentals drove the company's three-year performance.

See our latest analysis for ClearSign Technologies

SWOT Analysis for ClearSign Technologies

ClearSign Technologies 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years ClearSign Technologies saw its revenue grow at 76% per year. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 43% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. That's not to say we think the share price is too high. In fact, it might be worth keeping an eye on this one.

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

If you are thinking of buying or selling ClearSign Technologies stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that ClearSign Technologies has rewarded shareholders with a total shareholder return of 33% in the last twelve months. Notably the five-year annualised TSR loss of 4% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. 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. To that end, you should be aware of the 4 warning signs we've spotted with ClearSign Technologies .

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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