Notion VTec Berhad (KLSE:NOTION) delivers shareholders favorable 43% return over 1 year, surging 14% in the last week alone

If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can significantly boost your returns by picking above-average stocks. For example, the Notion VTec Berhad (KLSE:NOTION) share price is up 43% in the last 1 year, clearly besting the market return of around 9.5% (not including dividends). So that should have shareholders smiling. Zooming out, the stock is actually down 38% in the last three years.

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

Check out our latest analysis for Notion VTec Berhad

Because Notion VTec Berhad made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally hope to see good revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last year Notion VTec Berhad saw its revenue grow by 9.2%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 43%. While not a huge gain tht seems pretty reasonable. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at Notion VTec Berhad's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Notion VTec Berhad shareholders have received a total shareholder return of 43% over one year. That gain is better than the annual TSR over five years, which is 6%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Notion VTec Berhad better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Notion VTec Berhad (of which 2 don't sit too well with us!) you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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