The 10% return this week takes Catapult Group International's (ASX:CAT) shareholders one-year gains to 105%

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Catapult Group International Ltd (ASX:CAT) share price had more than doubled in just one year - up 105%. On top of that, the share price is up 28% in about a quarter. The longer term returns have not been as good, with the stock price only 3.9% higher than it was three years ago.

Since it's been a strong week for Catapult Group International shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Catapult Group International

Given that Catapult Group International didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Catapult Group International grew its revenue by 19% last year. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 105%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. Of course, we are always cautious about succumbing to 'fear of missing out' when a stock has shot up strongly.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

This free interactive report on Catapult Group International's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Catapult Group International shareholders have received a total shareholder return of 105% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 14% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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. Take risks, for example - Catapult Group International has 2 warning signs we think you should be aware of.

We will like Catapult Group International better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com