Investors Who Bought Development Works Food (TADAWUL:9501) Shares Three Years Ago Are Now Up 539%

Investing can be hard but the potential fo an individual stock to pay off big time inspires us. But when you hold the right stock for the right time period, the rewards can be truly huge. Take, for example, the Development Works Food Co. Ltd (TADAWUL:9501) share price, which skyrocketed 539% over three years. Also pleasing for shareholders was the 94% gain in the last three months.

It really delights us to see such great share price performance for investors.

See our latest analysis for Development Works Food

Development Works Food wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Development Works Food saw its revenue grow at 25% per year. That's well above most pre-profit companies. And it's not just the revenue that is taking off. The share price is up 86% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like Development Works Food can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

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

This free interactive report on Development Works Food's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, Development Works Food's total shareholder return last year was 212%. That gain actually surpasses the 86% TSR it generated (per year) over three years. Given the track record of solid returns over varying time frames, it might be worth putting Development Works Food on your watchlist. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Development Works Food has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course Development Works Food 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 SA exchanges.

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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. 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.
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