Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. To wit, the Central Global Berhad (KLSE:CGB) share price has soared 729% over five years. This just goes to show the value creation that some businesses can achieve. Anyone who held for that rewarding ride would probably be keen to talk about it.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
See our latest analysis for Central Global Berhad
Given that Central Global Berhad 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last 5 years Central Global Berhad saw its revenue grow at 15% per year. That's a fairly respectable growth rate. Arguably it's more than reflected in the very strong share price gain of 53% a year over a half a decade. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on Central Global Berhad's balance sheet strength is a great place to start, if you want to investigate the stock further.
Central Global Berhad's TSR for the year was broadly in line with the market average, at 9.4%. We should note here that the five-year TSR is more impressive, at 53% per year. More recently, the share price growth has slowed. But it has to be said the overall picture is one of good long term and short term performance. Arguably that makes Central Global Berhad a stock worth watching. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that Central Global Berhad is showing 1 warning sign in our investment analysis , you should know about...
But note: Central Global Berhad may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges.