High Tide Inc. (CVE:HITI) shareholders have seen the share price descend 18% over the month. But that doesn’t change the fact that the returns over the last three years have been pleasing. In the last three years the share price is up, 84%: better than the market.

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 High Tide 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. 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 three years High Tide has grown its revenue at 16% annually. That’s pretty nice growth. The share price gain of 23% per year shows that the market is paying attention to this growth. Of course, valuation is quite sensitive to the rate of growth. Of course, it’s always worth considering funding risks when a company isn’t profitable.

The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

High Tide provided a TSR of 6.6% over the last twelve months. But that was short of the market average. If we look back over five years, the returns are even better, coming in at 7% per year for five years. It’s quite possible the business continues to execute with prowess, even as the share price gains are slowing. If you would like to research High Tide in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.