For many, the main point of investing in the stock market is to achieve spectacular returns. While the best companies are hard to find, but they can generate massive returns over long periods. Just think about the savvy investors who held Juventus Football Club S.p.A. (BIT:JUVE) shares for the last five years, while they gained 536%. If that doesn’t get you thinking about long term investing, we don’t know what will. Also pleasing for shareholders was the 12% gain in the last three months.
It really delights us to see such great share price performance for investors.
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Juventus Football Club 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 expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 5 years Juventus Football Club saw its revenue grow at 14% per year. That’s a pretty good long term growth rate. However, the share price gain of 45% during the period is considerably stronger. We usually like strong growth stocks but it does seem the market already appreciates this one quite well!
The chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
It’s good to see that Juventus Football Club has rewarded shareholders with a total shareholder return of 132% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 45% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You could get a better understanding of Juventus Football Club’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
Of course Juventus Football Club may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IT exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.