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If You Had Bought Juventus Football Club (BIT:JUVE) Shares Five Years Ago You'd Have Made 509%

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For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. Don't believe it? Then look at the Juventus Football Club S.p.A. (BIT:JUVE) share price. It's 509% higher than it was five years ago. This just goes to show the value creation that some businesses can achieve. On top of that, the share price is up 27% in about a quarter. But this could be related to the strong market, which is up 15% in the last three months.

We love happy stories like this one. The company should be really proud of that performance!

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Check out our latest analysis for Juventus Football Club

Because Juventus Football Club is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. When a company doesn't make profits, we'd generally expect to see good 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.

In the last 5 years Juventus Football Club saw its revenue grow at 14% per year. That's a pretty good long term growth rate. Arguably it's more than reflected in the very strong share price gain of 44% a year over a half a decade. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.

The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.

BIT:JUVE Income Statement, April 3rd 2019
BIT:JUVE Income Statement, April 3rd 2019

If you are thinking of buying or selling Juventus Football Club stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Juventus Football Club shareholders have received a total shareholder return of 124% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 44% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

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 IT exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.