Active investing isn't easy, but for those that do it, the aim is to find the best companies to buy, and to profit handsomely. When you buy and hold the right company, the returns can make a huge difference to both you and your family. For example, Bitfarms Ltd. (CVE:BITF) has generated a beautiful 325% return in just a single year. It's up an even more impressive 721% over the last quarter. We'll need to follow Bitfarms for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.
Check out our latest analysis for Bitfarms
Because Bitfarms made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Bitfarms grew its revenue by 27% last year. That's a fairly respectable growth rate. Arguably it's more than reflected in the truly wondrous share price gain of 325% in the last year. While we are always careful about jumping on a hot stock too late, there's certainly good reason to keep an eye on Bitfarms.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here..
A Different Perspective
Bitfarms boasts a total shareholder return of 325% for the last year. And the share price momentum remains respectable, with a gain of 721% in the last three months. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Bitfarms (of which 1 is concerning!) you should know about.
But note: Bitfarms 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).