It's always best to build a diverse portfolio of shares, since any stock business could lag the broader market. But if you're going to beat the market overall, you need to have individual stocks that outperform. One such company is Ichor Holdings, Ltd. (NASDAQ:ICHR), which saw its share price increase 37% in the last year, slightly above the market return of around 32% (not including dividends). In contrast, the longer term returns are negative, since the share price is 24% lower than it was three years ago.

The past week has proven to be lucrative for Ichor Holdings investors, so let's see if fundamentals drove the company's one-year performance.

Given that Ichor Holdings 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. 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.

Ichor Holdings actually shrunk its revenue over the last year, with a reduction of 10%. Despite the lack of revenue growth, the stock has returned a solid 37% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

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 Ichor Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Ichor Holdings' TSR for the year was broadly in line with the market average, at 37%. That gain looks pretty satisfying, and it is even better than the five-year TSR of 2% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. It's always interesting to track share price performance over the longer term. But to understand Ichor Holdings better, we need to consider many other factors. For instance, we've identified 1 warning sign for Ichor Holdings that you should be aware of.

If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying.

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.