For us, stock picking is in large part the hunt for the truly magnificent stocks. But when you hold the right stock for the right time period, the rewards can be truly huge. One bright shining star stock has been Artroniq Berhad (KLSE:ARTRONIQ), which is 513% higher than three years ago. Also pleasing for shareholders was the 40% gain in the last three months. We love happy stories like this one. The company should be really proud of that performance!
The past week has proven to be lucrative for Artroniq Berhad investors, so let's see if fundamentals drove the company's three-year performance.
View our latest analysis for Artroniq Berhad
We don't think that Artroniq Berhad's modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
Artroniq Berhad's revenue trended up 38% each year over three years. That's much better than most loss-making companies. And it's not just the revenue that is taking off. The share price is up 83% per year in that time. It's always tempting to take profits after a share price gain like that, but high-growth companies like Artroniq Berhad can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Artroniq Berhad's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that Artroniq Berhad has rewarded shareholders with a total shareholder return of 15% in the last twelve months. Having said that, the five-year TSR of 21% a year, is even better. It's always interesting to track share price performance over the longer term. But to understand Artroniq Berhad better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with Artroniq Berhad , and understanding them should be part of your investment process.
But note: Artroniq Berhad 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 MY exchanges.