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Digi Power X (CVE:DGX) delivers shareholders massive 71% CAGR over 3 years, surging 10% in the last week alone

Simply Wall St · 01/05 11:16

It might be of some concern to shareholders to see the Digi Power X Inc. (CVE:DGX) share price down 22% in the last month. But over the last three years the stock has shone bright like a diamond. The longer term view reveals that the share price is up 404% in that period. So you might argue that the recent reduction in the share price is unremarkable in light of the longer term performance. Only time will tell if there is still too much optimism currently reflected in the share price.

The past week has proven to be lucrative for Digi Power X investors, so let's see if fundamentals drove the company's three-year performance.

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Digi Power X 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Digi Power X saw its revenue grow at 16% per year. That's pretty nice growth. Some shareholders might think that the share price rise of 71% per year is a lucky result, considering the level of revenue growth. A hot stock like this is usually well worth taking a closer look at, as long as you don't let the fear of missing out (FOMO) impact your thinking.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
TSXV:DGX Earnings and Revenue Growth January 5th 2026

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

It's good to see that Digi Power X has rewarded shareholders with a total shareholder return of 65% in the last twelve months. That's better than the annualised return of 11% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Digi Power X (at least 2 which don't sit too well with us) , and understanding them should be part of your investment process.

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Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges.