When you buy shares in a company, it’s worth keeping in mind the possibility that it could fail, and you could lose your money. But on the bright side, if you buy shares in a high quality company at the right price, you can gain well over 100%. For example, the Evolus, Inc. (NASDAQ:EOLS) share price has soared 216% in the last half decade. Most would be very happy with that. On top of that, the share price is up 20% in about a quarter. This could be related to the recent financial results, released recently – you can catch up on the most recent data by reading our company report.

With that in mind, it’s worth seeing if the company’s underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

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Evolus wasn’t profitable in the last twelve months, it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. 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.

For the last half decade, Evolus can boast revenue growth at a rate of 35% per year. That’s well above most pre-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 26% per year, compound, during the period. This suggests the market has well and truly recognized the progress the business has made. To our minds that makes Evolus worth investigating – it may have its best days ahead.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

Take a more thorough look at Evolus’ financial health with this free report on its balance sheet.

Investors in Evolus had a tough year, with a total loss of 5.6%, against a market gain of about 9.5%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn’t be so upset, since they would have made 26%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It’s always interesting to track share price performance over the longer term. But to understand Evolus better, we need to consider many other factors. Case in point: We’ve spotted 2 warning signs for Evolus you should be aware of.