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Long term investing can be life changing when you buy and hold the truly great businesses. While the best companies are hard to find, but they can generate massive returns over long periods. For example, the BIGG Digital Assets Inc. (CVE:BIGG) share price is up a whopping 425% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. And in the last week the share price has popped 56%.
Since it's been a strong week for BIGG Digital Assets shareholders, let's have a look at trend of the longer term fundamentals.
View our latest analysis for BIGG Digital Assets
BIGG Digital Assets 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.
In the last 5 years BIGG Digital Assets saw its revenue grow at 28% per year. Even measured against other revenue-focussed companies, that's a good result. Arguably, this is well and truly reflected in the strong share price gain of 39%(per year) over the same period. Despite the strong run, top performers like BIGG Digital Assets have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
BIGG Digital Assets shareholders gained a total return of 24% during the year. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 39% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. 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. Like risks, for instance. Every company has them, and we've spotted 6 warning signs for BIGG Digital Assets (of which 2 don't sit too well with us!) you should know about.