If you want to compound wealth in the stock market, you can do so by buying an index fund. But you can do a lot better than that by buying good quality businesses for attractive prices. For example, the Uni-Asia Group Limited (SGX:CHJ) share price is 43% higher than it was five years ago, which is more than the market average. It’s also good to see that the stock is up 17% in a year.

Let’s take a look at the underlying fundamentals over the longer term, and see if they’ve been consistent with shareholders returns.

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Uni-Asia Group 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. Shareholders of unprofitable companies usually desire strong revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last half decade Uni-Asia Group’s revenue has actually been trending down at about 14% per year. Even though revenue hasn’t increased, the stock actually gained 7%, per year, during the same period. It’s probably worth checking other factors such as the profitability, to try to understand the share price action. It may not be reflecting the revenue.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling Uni-Asia Group stock, you should check out this FREE detailed report on its balance sheet.

As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Uni-Asia Group’s TSR for the last 5 years was 96%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return.

Uni-Asia Group shareholders are up 21% for the year (even including dividends). But that return falls short of the market. On the bright side, that’s still a gain, and it’s actually better than the average return of 14% over half a decade It is possible that returns will improve along with the business fundamentals. 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. Like risks, for instance. Every company has them, and we’ve spotted 3 warning signs for Uni-Asia Group (of which 2 are potentially serious!) you should know about.