Spectral MD Holdings (LON:SMD) shareholder returns have been respectable, earning 34% in 1 year

These days it's easy to simply buy an index fund, and your returns should (roughly) match the market. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Spectral MD Holdings, Ltd. (LON:SMD) share price is 34% higher than it was a year ago, much better than the market decline of around 1.0% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! Spectral MD Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

Since the stock has added UK£6.8m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for Spectral MD Holdings

Spectral MD Holdings 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.

In the last year Spectral MD Holdings saw its revenue grow by 66%. That's stonking growth even when compared to other loss-making stocks. The solid 34% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Spectral MD Holdings. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

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 Spectral MD Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Spectral MD Holdings boasts a total shareholder return of 34% for the last year. Unfortunately the share price is down 5.0% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Spectral MD Holdings , and understanding them should be part of your investment process.

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 British exchanges.

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

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.