The 104% return this week takes Procurri's (SGX:BVQ) shareholders one-year gains to 73%

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 Procurri Corporation Limited (SGX:BVQ) share price is up 73% in the last 1 year, clearly besting the market return of around 15% (not including dividends). So that should have shareholders smiling. The longer term returns have not been as good, with the stock price only 15% higher than it was three years ago.

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

View our latest analysis for Procurri

Because Procurri made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last year Procurri saw its revenue shrink by 16%. The stock is up 73% in that time, a fine performance given the revenue drop. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at Procurri's financial health with this free report on its balance sheet.

A Different Perspective

It's good to see that Procurri has rewarded shareholders with a total shareholder return of 73% in the last twelve months. That gain is better than the annual TSR over five years, which is 2%. 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. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Procurri has 3 warning signs (and 2 which can't be ignored) we think you should know about.

But note: Procurri may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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