Gulf Navigation Holding PJSC (DFM:GULFNAV) shareholder returns have been enviable, earning 793% in 3 years

We think that it's fair to say that the possibility of finding fantastic multi-year winners is what motivates many investors. But when you hold the right stock for the right time period, the rewards can be truly huge. One such superstar is Gulf Navigation Holding PJSC (DFM:GULFNAV), which saw its share price soar 793% in three years. And in the last week the share price has popped 3.3%. We love happy stories like this one. The company should be really proud of that performance!

Since it's been a strong week for Gulf Navigation Holding PJSC shareholders, let's have a look at trend of the longer term fundamentals.

Check out our latest analysis for Gulf Navigation Holding PJSC

While Gulf Navigation Holding PJSC made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. 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.

In the last 3 years Gulf Navigation Holding PJSC saw its revenue shrink by 3.3% per year. This is in stark contrast to the strong share price growth of 107%, compound, per year. This clear lack of correlation between revenue and share price is surprising to see in a money losing company. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

This free interactive report on Gulf Navigation Holding PJSC's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's good to see that Gulf Navigation Holding PJSC has rewarded shareholders with a total shareholder return of 451% in the last twelve months. That gain is better than the annual TSR over five years, which is 34%. Therefore it seems like sentiment around the company has been positive lately. 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. For example, we've discovered 2 warning signs for Gulf Navigation Holding PJSC that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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