While some may be content with an index fund, active investors strive to find really great investments in the stock market. When an investor finds a multi-bagger (a stock that climbs over 200%) it makes a big difference to their portfolio. In the case of the Chicken Soup for Soul Entertainment, Inc. (NASDAQ: CSSE), the share price is up an incredible 327% in the last year alone. In addition, the share price has risen by 50% in around a quarter. The company recently released its financial results. You can read the latest figures in our company report. In the long term, too, shareholders have done well with a plus of 316% over the past three years.

Check out our latest analysis for Chicken Soup for Soul Entertainment

Chicken soup for Soul Entertainment has not been profitable for the past twelve months. It is unlikely that there is a strong correlation between share price and earnings per share (EPS). Revenue is arguably our next best option. Generally, when a company is not making profits, we expect good sales growth. This is because rapid sales growth can easily be extrapolated to profit projections, which are often of considerable size.

In the past twelve months, Chicken Soup for the Soul Entertainment’s sales grew 20%. We undoubtedly respect that kind of growth. This is reflected more than in the really miraculous price increase of 327% last year. We’re always cautious when the stock’s price has risen this much, but there is certainly enough revenue growth to warrant a closer look at Chicken Soup for Soul Entertainment.

The company’s sales and earnings (over time) are shown in the image below (click for the exact numbers).

NasdaqGM: CSSE earnings and sales growth April 5, 2021

We are happy to announce that the CEO of similarly capitalized companies is paid more modestly than most CEOs. While CEO compensation is always worth reviewing, the really important question is whether the company can grow its profits going forward. We therefore recommend checking this free Consensus forecast report

Another perspective

We’re excited to announce that Chicken Soup for Soul Entertainment rewarded shareholders with a total return of 327% last year. That’s better than the annualized TSR of 63% over the past three years. With a track record of solid returns over different time periods, it might be worth adding chicken soup on your watchlist for soul entertainment. While it is worth considering the varying effects of market conditions on the stock price, other factors are even more important. For example we discovered 3 warning signs for chicken soup for Soul Entertainment You should know this before investing here.

For those who like to find Attract investments this free List of growing companies, with recent insider buying, could be just the ticket.

Please note that the market returns reported in this article reflect the market weighted average returns on stocks currently traded on US exchanges.

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This article from Simply Wall St is of a general nature. It is not a recommendation to buy or sell stocks and does not take into account your goals or your financial situation. We want to provide you with a long-term, focused analysis based on fundamental data. Note that our analysis may not take into account the latest price sensitive company announcements or quality materials. Simply Wall St has no position in the stocks mentioned.
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