Despite currently being unprofitable, EQS Group (ETR:EQS) has delivered a 53% return to shareholders over 5 years

EQS Group AG (ETR:EQS) shareholders might be concerned after seeing the share price drop 16% in the last week. But that doesn't change the fact that the returns over the last five years have been pleasing. After all, the share price is up a market-beating 53% in that time.

Since the long term performance has been good but there's been a recent pullback of 16%, let's check if the fundamentals match the share price.

View our latest analysis for EQS Group

EQS Group 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.

For the last half decade, EQS Group can boast revenue growth at a rate of 17% per year. Even measured against other revenue-focussed companies, that's a good result. While the compound gain of 9% per year is good, it's not unreasonable given the strong revenue growth. If you think there could be more growth to come, now might be the time to take a close look at EQS Group. Opportunity lies where the market hasn't fully priced growth in the underlying business.

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

If you are thinking of buying or selling EQS Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 7.9% in the last year, EQS Group shareholders lost 4.7%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 9%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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