CLERHP Estructuras (BME:CLR) shareholder returns have been massive, earning 317% in 5 years

Buying shares in the best businesses can build meaningful wealth for you and your family. While not every stock performs well, when investors win, they can win big. For example, the CLERHP Estructuras, S.A. (BME:CLR) share price is up a whopping 317% in the last half decade, a handsome return for long term holders. And this is just one example of the epic gains achieved by some long term investors. On top of that, the share price is up 33% in about a quarter.

The past week has proven to be lucrative for CLERHP Estructuras investors, so let's see if fundamentals drove the company's five-year performance.

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CLERHP Estructuras 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 desire strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last 5 years CLERHP Estructuras saw its revenue grow at 13% per year. That's a pretty good long term growth rate. However, the share price gain of 33% during the period is considerably stronger. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!

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 CLERHP Estructuras' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

CLERHP Estructuras shareholders are up 32% for the year. But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 33% over five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. 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. To that end, you should be aware of the 2 warning signs we've spotted with CLERHP Estructuras .

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 Spanish 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.