Investing in 4iG Nyrt (BUSE:4IG) five years ago would have delivered you a 699% gain

Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. Don't believe it? Then look at the 4iG Nyrt. (BUSE:4IG) share price. It's 644% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. It's also good to see the share price up 145% over the last quarter. We love happy stories like this one. The company should be really proud of that performance!

So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.

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4iG Nyrt 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, 4iG Nyrt can boast revenue growth at a rate of 48% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 49%(per year) over the same period. It's never too late to start following a top notch stock like 4iG Nyrt, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.

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

Take a more thorough look at 4iG Nyrt's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

We've already covered 4iG Nyrt's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Dividends have been really beneficial for 4iG Nyrt shareholders, and that cash payout contributed to why its TSR of 699%, over the last 5 years, is better than the share price return.

A Different Perspective

We're pleased to report that 4iG Nyrt shareholders have received a total shareholder return of 495% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 52% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand 4iG Nyrt better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for 4iG Nyrt you should be aware of, and 1 of them is concerning.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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