Checkin.Com Group (STO:CHECK) swells 10% this week, taking one-year gains to 40%

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 Checkin.Com Group AB (publ) (STO:CHECK) share price is up 40% in the last 1 year, clearly besting the market decline of around 5.2% (not including dividends). So that should have shareholders smiling. Checkin.Com Group hasn't been listed for long, so it's still not clear if it is a long term winner.

Since the stock has added kr100m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Checkin.Com Group

Checkin.Com Group 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 expect 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.

In the last year Checkin.Com Group saw its revenue grow by 48%. That's well above most other pre-profit companies. The solid 40% share price gain goes down pretty well, but it's not necessarily as good as you might expect given the top notch revenue growth. If that's the case, now might be the time to take a close look at Checkin.Com Group. Since we evolved from monkeys, we think in linear terms by nature. So if growth goes exponential, opportunity may exist for the enlightened.

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 Checkin.Com Group's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Checkin.Com Group boasts a total shareholder return of 40% for the last year. It's always interesting to track share price performance over the longer term. But to understand Checkin.Com Group better, we need to consider many other factors. Even so, be aware that Checkin.Com Group is showing 2 warning signs in our investment analysis , you should know about...

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.