The 10% return this week takes Qliro's (STO:QLIRO) shareholders one-year gains to 81%

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 Qliro AB (publ) (STO:QLIRO) share price is up 81% in the last 1 year, clearly besting the market decline of around 1.7% (not including dividends). So that should have shareholders smiling. We'll need to follow Qliro for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

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

Check out our latest analysis for Qliro

Qliro 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 expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Qliro grew its revenue by 1.0% 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 81%. That's not a standout result, but it is solid - much like the level of revenue growth. 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 below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. This free report showing analyst forecasts should help you form a view on Qliro

A Different Perspective

Qliro shareholders should be happy with the total gain of 81% over the last twelve months. And the share price momentum remains respectable, with a gain of 93% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Like risks, for instance. Every company has them, and we've spotted 4 warning signs for Qliro (of which 1 shouldn't be ignored!) you should know about.

Qliro is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Swedish 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.