Even though Quartiers Properties (STO:QUART) has lost kr127m market cap in last 7 days, shareholders are still up 155% over 3 years

It might be of some concern to shareholders to see the Quartiers Properties AB (publ) (STO:QUART) share price down 20% in the last month. But in three years the returns have been great. In fact, the share price is up a full 155% compared to three years ago. After a run like that some may not be surprised to see prices moderate. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.

Since the long term performance has been good but there's been a recent pullback of 16%, let's check if the fundamentals match the share price.

Check out our latest analysis for Quartiers Properties

Quartiers Properties 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. Shareholders of unprofitable companies usually desire strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last three years Quartiers Properties has grown its revenue at 34% annually. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 37% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say Quartiers Properties 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).

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

A Different Perspective

It's nice to see that Quartiers Properties shareholders have received a total shareholder return of 45% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 18% per year), it would seem that the stock's performance has improved in recent times. 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 Quartiers Properties better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Quartiers Properties you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation).

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.