For many, the main point of investing in the stock market is to achieve spectacular returns. When an investor finds a multi-bagger (a stock that goes up over 200%), it makes a big difference to their portfolio. For example, Delcath Systems, Inc. (NASDAQ:DCTH) has generated a beautiful 330% return in just a single year. Better yet, the share price has risen 13% in the last week. Also impressive, the stock is up 65% over three years, making long term shareholders happy, too.

Since the stock has added US$44m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

View our latest analysis for Delcath Systems

Given that Delcath Systems didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. 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.

In the last year Delcath Systems saw its revenue grow by 946%. That's stonking growth even when compared to other loss-making stocks. But the share price seems headed to the moon, up 330% as previously highlighted. Despite the strong growth, it's certainly possible the market has gotten a little over-excited. But if the share price does moderate a bit, there might be an opportunity for high growth investors.

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

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Delcath Systems stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Delcath Systems shareholders have received a total shareholder return of 330% over the last year. Notably the five-year annualised TSR loss of 10% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Delcath Systems better, we need to consider many other factors. For instance, we've identified 2 warning signs for Delcath Systems that you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar).

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