By buying an index fund, you can roughly match the market return with ease. But if you buy good businesses at attractive prices, your portfolio returns could exceed the average market return. Just take a look at Asiaray Media Group Limited (HKG:1993), which is up 96%, over three years, soundly beating the market return of 1.5% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 45% in the last year , including dividends .

Check out our latest analysis for Asiaray Media Group

Given that Asiaray Media Group only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. 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.

In the last 3 years Asiaray Media Group saw its revenue grow at 12% per year. That's pretty nice growth. While the share price has done well, compounding at 25% yearly, over three years, that move doesn't seem over the top. If that's the case, then it could be well worth while to research the growth trajectory. Of course, it's always worth considering funding risks when a company isn't profitable.

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

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. Dive deeper into the earnings by checking this interactive graph of Asiaray Media Group's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

We'd be remiss not to mention the difference between Asiaray Media Group's total shareholder return (TSR) and its share price return. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Dividends have been really beneficial for Asiaray Media Group shareholders, and that cash payout contributed to why its TSR of 133%, over the last 3 years, is better than the share price return.

A Different Perspective

It's nice to see that Asiaray Media Group shareholders have received a total shareholder return of 45% over the last year. That gain is better than the annual TSR over five years, which is 5.1%. 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. 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. For example, we've discovered 3 warning signs for Asiaray Media Group (2 are a bit unpleasant!) that you should be aware of before investing here.