These days it’s easy to simply buy an index fund, and your returns should (roughly) match the market. But if you pick the right individual stocks, you could make more than that. To wit, the EPH European Property Holdings PLC (VTX:EPH) share price is 13% higher than it was a year ago, much better than the market return of around 5.6% (not including dividends) in the same period. That’s a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 2.0% lower than it was three years ago.

Now it’s worth having a look at the company’s fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

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Because EPH European Property Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one would hope for good top-line growth to make up for the lack of earnings.

In the last year EPH European Property Holdings saw its revenue grow by 24%. We respect that sort of growth, no doubt. Buyers pushed the share price 13% in response, which isn’t unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)

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 EPH European Property Holdings’ financial health with this free report on its balance sheet.

We’re pleased to report that EPH European Property Holdings shareholders have received a total shareholder return of 13% over one year. That certainly beats the loss of about 0.4% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We’ve identified 2 warning signs with EPH European Property Holdings , and understanding them should be part of your investment process.