One simple way to benefit from the stock market is to buy an index fund. But if you pick the right individual stocks, you could make more than that. For example, the XL Holdings Berhad (KLSE:XL) share price is up 73% in the last three years, clearly besting the market decline of around 0.6% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 26% in the last year.

The past week has proven to be lucrative for XL Holdings Berhad investors, so let's see if fundamentals drove the company's three-year performance.

View our latest analysis for XL Holdings Berhad

We don't think that XL Holdings 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. It would be hard to believe in a more profitable future without growing revenues.

Over the last three years XL Holdings Berhad has grown its revenue at 67% annually. That's well above most pre-profit companies. While the compound gain of 20% per year over three years is pretty good, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at XL Holdings Berhad. A window of opportunity may reveal itself with time, if the business can trend to profitability.

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

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

A Different Perspective

We're pleased to report that XL Holdings Berhad shareholders have received a total shareholder return of 26% over one year. That gain is better than the annual TSR over five years, which is 10%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. 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 - XL Holdings Berhad has 2 warning signs (and 1 which is significant) we think you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).