Genius Brands International (NASDAQ:GNUS) shareholders have earned a 33% CAGR over the last three years

The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. To wit, the Genius Brands International, Inc. (NASDAQ:GNUS) share price has flown 133% in the last three years. How nice for those who held the stock! It's also up 37% in about a month.

So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns.

View our latest analysis for Genius Brands International

Genius Brands International 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 expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years Genius Brands International saw its revenue grow at 84% per year. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 33% compound over three years. But it does seem like the market is paying attention to strong revenue growth. Nonetheless, we'd say Genius Brands International is still worth investigating - successful businesses can often keep growing for long periods.

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

earnings-and-revenue-growth

This free interactive report on Genius Brands International's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

We regret to report that Genius Brands International shareholders are down 17% for the year. Unfortunately, that's worse than the broader market decline of 8.1%. 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. Unfortunately, longer term shareholders are suffering worse, given the loss of 11% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. It's always interesting to track share price performance over the longer term. But to understand Genius Brands International better, we need to consider many other factors. Take risks, for example - Genius Brands International has 2 warning signs (and 1 which is significant) we think you should know about.

We will like Genius Brands International better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

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