Bravura Solutions Limited (ASX:BVS) shareholders have seen the share price descend 15% over the month. But that doesn't detract from the splendid returns of the last year. Like an eagle, the share price soared 163% in that time. So it is important to view the recent reduction in price through that lense. The real question is whether the business is trending in the right direction.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for Bravura Solutions

Bravura Solutions wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally hope to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

Over the last twelve months, Bravura Solutions' revenue grew by 2.8%. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 163%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.

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

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Bravura Solutions stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's good to see that Bravura Solutions has rewarded shareholders with a total shareholder return of 163% in the last twelve months. That certainly beats the loss of about 11% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Bravura Solutions by clicking this link.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar).