Yahoo Finance Investors ignore increasing losses at PyroGenesis Canada (TSE:PYR) as stock jumps 12% this past week
Some PyroGenesis Canada Inc. (TSE:PYR) shareholders are probably rather concerned to see the share price fall 40% over the last three months. But that doesn't change the fact that the returns over the last three years have been very strong. Indeed, the share price is up a very strong 231% in that time. To some, the recent share price pullback wouldn't be surprising after such a good run. Only time will tell if there is still too much optimism currently reflected in the share price.
Since the stock has added CA$34m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
See our latest analysis for PyroGenesis Canada
PyroGenesis Canada isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 PyroGenesis Canada saw its revenue grow at 74% per year. That's much better than most loss-making companies. Along the way, the share price gained 49% per year, a solid pop by our standards. 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 company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
PyroGenesis Canada shareholders are down 58% for the year, but the market itself is up 2.6%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 22% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Before spending more time on PyroGenesis Canada it might be wise to click here to see if insiders have been buying or selling shares.
But note: PyroGenesis Canada 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).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA 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.
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