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. While not every stock performs well, when investors win, they can win big. In the case of Auxly Cannabis Group Inc. (TSE:XLY), the share price is up an incredible 333% in the last year alone. In the last week the share price is up 30%. Zooming out, the stock is actually down 58% in the last three years.
The past week has proven to be lucrative for Auxly Cannabis Group investors, so let's see if fundamentals drove the company's one-year performance.
View our latest analysis for Auxly Cannabis Group
Auxly Cannabis Group 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. 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.
In the last year Auxly Cannabis Group saw its revenue grow by 16%. That's a fairly respectable growth rate. But the market is even more excited about it, with the price apparently bound for the moon, up 333% in one of earth's orbits. We're always cautious when the share price is up so much, but there's certainly enough revenue growth to justify taking a closer look at Auxly Cannabis Group.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
If you are thinking of buying or selling Auxly Cannabis Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Auxly Cannabis Group shareholders have received a total shareholder return of 333% over one year. There's no doubt those recent returns are much better than the TSR loss of 13% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Auxly Cannabis Group better, we need to consider many other factors. For instance, we've identified 3 warning signs for Auxly Cannabis Group (1 is a bit unpleasant) that you should be aware of.
For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.