Geotech Holdings (HKG:1707) delivers shareholders respectable 43% return over 1 year, surging 43% in the last week alone

If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Geotech Holdings Ltd. (HKG:1707) share price is 43% higher than it was a year ago, much better than the market decline of around 7.2% (not including dividends) in the same period. If it can keep that out-performance up over the long term, investors will do very well! In contrast, the longer term returns are negative, since the share price is 20% lower than it was three years ago.

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

Check out our latest analysis for Geotech Holdings

Because Geotech Holdings 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last twelve months, Geotech Holdings' revenue grew by 2.2%. That's not great considering the company is losing money. In keeping with the revenue growth, the share price gained 43% in that time. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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

A Different Perspective

It's nice to see that Geotech Holdings shareholders have received a total shareholder return of 43% over the last year. There's no doubt those recent returns are much better than the TSR loss of 1.4% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. 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 - Geotech Holdings has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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 Hong Kong 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.