HT Media (NSE:HTMEDIA) shareholder returns have been stellar, earning 105% in 5 years

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But when you pick a company that is really flourishing, you can make more than 100%. Long term HT Media Limited (NSE:HTMEDIA) shareholders would be well aware of this, since the stock is up 105% in five years. And in the last week the share price has popped 36%.

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

We've discovered 1 warning sign about HT Media. View them for free.

HT Media isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 HT Media saw its revenue grow at 0.9% per year. That's not a very high growth rate considering the bottom line. So we wouldn't have expected to see the share price to have lifted 15% for each year during that time, but that's what happened. While we wouldn't be overly concerned, it might be worth checking whether you think the fundamental business gains really justify the share price action. It may be that the market is pretty optimistic about HT Media.

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

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

A Different Perspective

HT Media shareholders are down 19% for the year, but the market itself is up 5.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 15% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It's always interesting to track share price performance over the longer term. But to understand HT Media better, we need to consider many other factors. Even so, be aware that HT Media is showing 1 warning sign in our investment analysis , you should know about...

But note: HT Media may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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