The five-year returns have been respectable for P3 Spain Logistic Parks SOCIMI (BME:YP3L) shareholders despite underlying losses increasing

Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. And while active stock picking involves risks (and requires diversification) it can also provide excess returns. For example, the P3 Spain Logistic Parks SOCIMI, S.A. (BME:YP3L) share price is up 91% in the last 5 years, clearly besting the market return of around 1.6% (ignoring dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 30%.

The past week has proven to be lucrative for P3 Spain Logistic Parks SOCIMI investors, so let's see if fundamentals drove the company's five-year performance.

View our latest analysis for P3 Spain Logistic Parks SOCIMI

Because P3 Spain Logistic Parks SOCIMI made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

For the last half decade, P3 Spain Logistic Parks SOCIMI can boast revenue growth at a rate of 18% per year. Even measured against other revenue-focussed companies, that's a good result. While the compound gain of 14% per year is good, it's not unreasonable given the strong revenue growth. If the strong revenue growth continues, we'd expect the share price to follow, in time. Of course, you'll have to research the business more fully to figure out if this is an attractive opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at P3 Spain Logistic Parks SOCIMI's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that P3 Spain Logistic Parks SOCIMI shareholders have received a total shareholder return of 30% over one year. That gain is better than the annual TSR over five years, which is 14%. 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. It's always interesting to track share price performance over the longer term. But to understand P3 Spain Logistic Parks SOCIMI better, we need to consider many other factors. Even so, be aware that P3 Spain Logistic Parks SOCIMI is showing 2 warning signs in our investment analysis , you should know about...

We will like P3 Spain Logistic Parks SOCIMI better if we see some big insider buys. While we wait, check out this free list of growing companies 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 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.