Future Consumer’s (NSE:FCONSUMER) Wonderful 935% Share Price Increase Shows How Capitalism Can Build Wealth

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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. To wit, the Future Consumer Limited (NSE:FCONSUMER) share price has soared 935% over five years. And this is just one example of the epic gains achieved by some long term investors. In more good news, the share price has risen 6.8% in thirty days.

Anyone who held for that rewarding ride would probably be keen to talk about it.

View our latest analysis for Future Consumer

Given that Future Consumer 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. Shareholders of unprofitable companies usually expect strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 5 years Future Consumer saw its revenue grow at 28% per year. Even measured against other revenue-focussed companies, that’s a good result. Fortunately, the market has not missed this, and has pushed the share price up by 60% per year in that time. It’s never too late to start following a top notch stock like Future Consumer, 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 chart below shows how revenue and earnings have changed with time, (if you click on the chart you can see the actual values).

NSEI:FCONSUMER Income Statement, March 11th 2019
NSEI:FCONSUMER Income Statement, March 11th 2019

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Future Consumer stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

While the broader market lost about 0.1% in the twelve months, Future Consumer shareholders did even worse, losing 4.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. On the bright side, long term shareholders have made money, with a gain of 60% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.