The 19% return this week takes Parkson Holdings Berhad's (KLSE:PARKSON) shareholders one-year gains to 93%

If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. For example, the Parkson Holdings Berhad (KLSE:PARKSON) share price is up 93% in the last 1 year, clearly besting the market return of around 9.7% (not including dividends). If it can keep that out-performance up over the long term, investors will do very well! However, the stock hasn't done so well in the longer term, with the stock only up 9.8% in three years.

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

Check out our latest analysis for Parkson Holdings Berhad

Given that Parkson Holdings Berhad didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Parkson Holdings Berhad grew its revenue by 7.9% last year. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 93%. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Parkson Holdings Berhad's earnings, revenue and cash flow.

A Different Perspective

It's good to see that Parkson Holdings Berhad has rewarded shareholders with a total shareholder return of 93% in the last twelve months. That gain is better than the annual TSR over five years, which is 1.1%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Parkson Holdings Berhad better, we need to consider many other factors. Case in point: We've spotted 1 warning sign for Parkson Holdings Berhad you should be aware of.

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 Malaysian 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.