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. For example, the Centrum Medyczne ENEL-MED S.A. (WSE:ENE) share price is up 36% in the last three years, clearly besting than the market return of around 7.5% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 12% in the last year.
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Because Centrum Medyczne ENEL-MED is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last three years Centrum Medyczne ENEL-MED has grown its revenue at 16% annually. That's pretty nice growth. While the share price has done well, compounding at 11% 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.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Take a more thorough look at Centrum Medyczne ENEL-MED's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Centrum Medyczne ENEL-MED shareholders have received a total shareholder return of 12% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 2.0% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on PL exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.