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 IQGeo Group plc (LON:IQG) share price is up 91% in the last three years, clearly besting the market decline of around 17% (not including dividends).

See our latest analysis for IQGeo Group

Given that IQGeo Group 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

IQGeo Group actually saw its revenue drop by 49% per year over three years. The revenue growth might be lacking but the share price has gained 24% each year in that time. Unless the company is going to make profits soon, we would be pretty cautious about it.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

If you are thinking of buying or selling IQGeo Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that IQGeo Group shareholders have received a total shareholder return of 89% over one year. Notably the five-year annualised TSR loss of 5.4% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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 - IQGeo Group has 1 warning sign we think you should be aware of.

We will like IQGeo Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.

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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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