The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Grand City Properties S.A. (ETR:GYC) share price is up 62% in the last 1 year, clearly besting the market return of around 4.5% (not including dividends). So that should have shareholders smiling. Unfortunately the longer term returns are not so good, with the stock falling 48% in the last three years.

On the back of a solid 7-day performance, let's check what role the company's fundamentals have played in driving long term shareholder returns.

Check out our latest analysis for Grand City Properties

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Over the last twelve months Grand City Properties went from profitable to unprofitable. While some may see this as temporary, we're a skeptical bunch, and so we're a little surprised to see the share price go up. It may be that the company has done well on other metrics.

Absent any improvement, we don't think a thirst for dividends is pushing up the Grand City Properties' share price. And at a glance the revenue growth does not impress, though a closer look at revenue trends may reveal some form of insight.

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 Grand City Properties' financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Grand City Properties shareholders have received a total shareholder return of 62% over one year. Of course, that includes the dividend. Notably the five-year annualised TSR loss of 7% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Grand City Properties better, we need to consider many other factors. For instance, we've identified 2 warning signs for Grand City Properties (1 can't be ignored) that you should be aware of.

Of course Grand City Properties may not be the best stock to buy. So you may wish to see this free collection of growth stocks.