Shoppers Stop (NSE:SHOPERSTOP) delivers shareholders stellar 49% CAGR over 3 years, surging 6.7% in the last week alone

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For example, the Shoppers Stop Limited (NSE:SHOPERSTOP) share price has soared 228% in the last three years. How nice for those who held the stock! And in the last month, the share price has gained 19%.

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

View our latest analysis for Shoppers Stop

Given that Shoppers Stop only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. It would be hard to believe in a more profitable future without growing revenues.

In the last 3 years Shoppers Stop saw its revenue grow at 25% per year. That's well above most pre-profit companies. Along the way, the share price gained 49% per year, a solid pop by our standards. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say Shoppers Stop is still worth investigating - successful businesses can often keep growing for long periods.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Shoppers Stop stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Shoppers Stop shareholders are up 17% for the year. But that was short of the market average. It's probably a good sign that the company has an even better long term track record, having provided shareholders with an annual TSR of 17% over five years. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. It's always interesting to track share price performance over the longer term. But to understand Shoppers Stop better, we need to consider many other factors. Case in point: We've spotted 4 warning signs for Shoppers Stop you should be aware of, and 1 of them shouldn't be ignored.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar).

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.