The 11% return this week takes Sanara MedTech's (NASDAQ:SMTI) shareholders five-year gains to 997%

Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. For example, the Sanara MedTech Inc. (NASDAQ:SMTI) share price is up a whopping 997% in the last half decade, a handsome return for long term holders. This just goes to show the value creation that some businesses can achieve. In more good news, the share price has risen 28% in thirty days. We love happy stories like this one. The company should be really proud of that performance!

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

View our latest analysis for Sanara MedTech

Given that Sanara MedTech didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last 5 years Sanara MedTech saw its revenue grow at 42% per year. That's well above most pre-profit companies. Arguably, this is well and truly reflected in the strong share price gain of 61%(per year) over the same period. It's never too late to start following a top notch stock like Sanara MedTech, since some long term winners go on winning for decades. So we'd recommend you take a closer look at this one, but keep in mind the market seems optimistic.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

It's probably worth noting that the CEO is paid less than the median at similar sized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. If you are thinking of buying or selling Sanara MedTech stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Sanara MedTech shareholders gained a total return of 0.7% during the year. But that return falls short of the market. On the bright side, the longer term returns (running at about 61% a year, over half a decade) look better. It's quite possible the business continues to execute with prowess, even as the share price gains are slowing. 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. Even so, be aware that Sanara MedTech is showing 1 warning sign in our investment analysis , you should know about...

But note: Sanara MedTech 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 American 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.