FBR Limited (ASX:FBR) shareholders have seen the share price fall 17% over the month. While this may be a setback, it does not negate the strong returns of the past 12 months. For the year as a whole, the company has easily outperformed an index fund with a gain of 73%.

With this in mind, it is worth examining whether the company’s underlying fundamentals have been the driver of its long-term performance or whether there are some discrepancies.

Check out our latest analysis for FBR

Because FBR was not profitable over the last twelve months, it is unlikely that we will see a strong correlation between its share price and its earnings per share (EPS). Our next best option is probably revenue. Shareholders of unprofitable companies usually want to see strong revenue growth. Some companies are willing to delay profitability in order to grow revenue faster, but in this case one would hope for good revenue growth to make up for the lack of profit.

FBR grew its revenue by 92% last year, which is far better than most loss-making companies. The solid 73% share price increase is good, but not necessarily as good as you’d expect given the stellar revenue growth. If that’s the case, now might be the time to take a closer look at FBR. People have trouble imagining (and valuing) exponential growth. Is that what we’re seeing here?

You can see how earnings and sales have changed over time in the figure below (click on the chart to see the exact values).

How the balance sheet has improved (or worsened) over time can be seen in this free interactive graphics.

A different perspective

It’s nice to see that FBR has rewarded shareholders with a total return of 73% over the last twelve months. That’s definitely better than the loss of around 8% per year over the last half decade. The long-term loss makes us cautious, but the short-term TSR gain certainly points to a brighter future. It’s always interesting to follow the share price trend over a longer period of time. But to better understand FBR, we need to consider many other factors. A case in point: We found 4 warning signs for FBR You should be aware of this and not ignore any of them.

If you are like me, you will not don’t want to miss this free List of undervalued small caps that are being bought by insiders.

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

Do you have feedback on this article? Are you concerned about the content? Contact us directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.