Investing in CHAPTERS Group (ETR:CHG) three years ago would have delivered you a 378% gain

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Generally speaking, investors are inspired to be stock pickers by the potential to find the big winners. Not every pick can be a winner, but when you pick the right stock, you can win big. For example, the CHAPTERS Group AG (ETR:CHG) share price is up a whopping 371% in the last three years, a handsome return for long term holders. Also pleasing for shareholders was the 34% gain in the last three months. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report.

So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns.

View our latest analysis for CHAPTERS Group

CHAPTERS Group isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually desire strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

CHAPTERS Group's revenue trended up 71% each year over three years. That's well above most pre-profit companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 68% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like CHAPTERS Group can sometimes sustain strong growth for many years. In fact, it might be time to put it on your watchlist, if you're not already familiar with the stock.

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

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at CHAPTERS Group's financial health with this free report on its balance sheet.

What About The Total Shareholder Return (TSR)?

Investors should note that there's a difference between CHAPTERS Group's total shareholder return (TSR) and its share price change, which we've covered above. Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. CHAPTERS Group hasn't been paying dividends, but its TSR of 378% exceeds its share price return of 371%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.