Zee Media (NSE:ZEEMEDIA) shareholder returns have been decent, earning 79% in 5 years

When you buy and hold a stock for the long term, you definitely want it to provide a positive return. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Zee Media Corporation Limited (NSE:ZEEMEDIA) share price is up 79% in the last five years, that's less than the market return. However, more recent buyers should be happy with the increase of 24% over the last year.

The past week has proven to be lucrative for Zee Media investors, so let's see if fundamentals drove the company's five-year performance.

Check out our latest analysis for Zee Media

Zee 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. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

For the last half decade, Zee Media can boast revenue growth at a rate of 1.2% per year. That's not a very high growth rate considering the bottom line. It's probably fair to say that the modest growth is reflected in the modest share price gain of 12% per year. It seems likely that we'll have to zoom in on the data, including profits, to understand if there is an opportunity here.

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 Zee Media stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Zee Media shareholders gained a total return of 24% during the year. But that was short of the market average. The silver lining is that the gain was actually better than the average annual return of 12% per year over five year. This suggests the company might be improving over time. You could get a better understanding of Zee Media's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.