Gallant Venture (SGX:5IG) investors have returned 11% over the past three years

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By buying an index fund, investors can get closer to the average market return. But if you buy good companies at attractive prices, your portfolio returns could exceed the average market return. For instance, Gallant Venture Ltd. (SGX:5IG) shareholders have seen the share price rise by 11% in three years, well above the market decline (17%, excluding dividends).

With that in mind, it’s worth seeing whether the company’s underlying fundamentals have been driving long-term performance, or if there are any gaps.

See our latest analysis for Gallant Venture

Gallant Venture is currently unprofitable, so most analysts would look to revenue growth to get a sense of how fast the underlying business is growing. Shareholders of unprofitable companies generally expect strong revenue growth. Indeed, rapid revenue growth can be easily extrapolated to predict profits, often of considerable size.

Over the past 3 years, Gallant Venture has seen its revenue decline by 60% per year. Despite the lack of revenue growth, the stock has returned 4%, compounded, over three years. Unless the company is turning a profit soon, we’d be pretty cautious about that.

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

earnings-and-revenue-growth

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive chart.

A different perspective

While it was certainly disappointing to see Gallant Venture shares down 0.8% throughout the year, it wasn’t nearly as bad as the market’s 3.2% loss. The loss of 0.9% per year suffered by shareholders over the past five years is much more concerning. As losses slow, we doubt many shareholders will be happy with the stock. It is always interesting to follow the evolution of the share price over the long term. But to better understand Gallant Venture, we need to consider many other factors. Example: we have identified 1 warning sign for Gallant Venture you should be aware.

If you’re like me, then you not want to miss this free list of growing companies insiders are buying.

Please note that the market returns quoted in this article reflect the average market-weighted returns of the stocks currently trading on the SG exchanges.

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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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