It hasn’t been the best quarter for Tropicana Corporation Berhad (KLSE:TROP) shareholders, since the share price has fallen 12% in that time. On the other hand the returns over the last half decade have not been bad. It’s good to see the share price is up 37% in that time, better than its market return of 31%.

So let’s assess the underlying fundamentals over the last 5 years and see if they’ve moved in lock-step with shareholder returns.

We’ve discovered 1 warning sign about Tropicana Corporation Berhad. View them for free.

Because Tropicana Corporation 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. Shareholders of unprofitable companies usually desire strong revenue growth. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

For the last half decade, Tropicana Corporation Berhad can boast revenue growth at a rate of 6.7% per year. That’s a pretty good long term growth rate. While the share price has beat the market, compounding at 7% yearly, over five years, there’s certainly some potential that the market hasn’t fully considered the growth track record. The key question is whether revenue growth will slow down, and if so, how quickly. There’s no doubt that it can be difficult to value pre-profit companies.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

Take a more thorough look at Tropicana Corporation Berhad’s financial health with this free report on its balance sheet.

We regret to report that Tropicana Corporation Berhad shareholders are down 11% for the year. Unfortunately, that’s worse than the broader market decline of 6.2%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there’s a good opportunity. On the bright side, long term shareholders have made money, with a gain of 7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. Case in point: We’ve spotted 1 warning sign for Tropicana Corporation Berhad you should be aware of.