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For us, stock picking is in large part the hunt for the truly magnificent stocks. You won't get it right every time, but when you do, the returns can be truly splendid. One bright shining star stock has been Tenaz Energy Corp. (TSE:TNZ), which is 556% higher than three years ago. It's also up 19% in about a month. We love happy stories like this one. The company should be really proud of that performance!
On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.
See our latest analysis for Tenaz Energy
Given that Tenaz Energy only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
Tenaz Energy's revenue trended up 50% each year over three years. That's well above most pre-profit companies. And it's not just the revenue that is taking off. The share price is up 87% per year in that time. Despite the strong run, top performers like Tenaz Energy have been known to go on winning for decades. So we'd recommend you take a closer look at this one, or even put it on your watchlist.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Tenaz Energy stock, you should check out this free report showing analyst profit forecasts.
A Different Perspective
It's good to see that Tenaz Energy has rewarded shareholders with a total shareholder return of 350% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 40% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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 Tenaz Energy is showing 2 warning signs in our investment analysis , you should know about...