Not every S&P/ASX 200 Index (ASX: XJO) stock is going to shoot the lights out and deliver 10-bagger plus returns in just five years.
Indeed, some will invariably head in the other direction and erode the value of your initial investment over time.
Which is why we always stress the importance of a properly diversified investment portfolio.
The equities part of that portfolio should ideally comprise a range of companies operating in various sectors and locations.
And if one of those companies happens to be an ASX 200 stock like Telix Pharmaceuticals Ltd (ASX: TLX), so much the better!
ASX 200 stock still running strong
Telix is a biopharmaceutical company primarily focused on developing diagnostic and therapeutic products to help treat different types of cancer.
Over the past 12 months alone, the Telix Pharmaceuticals share price has surged 155%, and even touched a record high of $22.38 in opening trading yesterday.
But if you'd bought shares in the ASX 200 stock five years ago, you'd really be laughing.
Five years ago, you could have picked up those same shares for $1.55 apiece.
That means for $6,000, you could have bought 3,870 shares with some pocket change left over.
In late afternoon trading yesterday, Telix shares were swapping hands for around $21.70 apiece. This means your 3,870 shares bought five years ago are now worth almost $84,000.
That's a gain of 1,300%. In five years.
For some context, the ASX 200 has gained around 23.7% over this same period.
How's that for some outperformance?
What's driving the Telix Pharmaceuticals share price higher?
If you look back at the chart above, you'll see that the ASX 200 stock has been trending higher for almost all of the past five years.
Now, that's too much time for us to cover in this article.
However, the company's 2023 calendar year results (reported on 22 February 2024) are quite indicative of the growth story that's been spurring investor interest.
In 2023 Telix Pharmaceuticals reported revenue of $502.5 million, up 214% from 2022.
The company also achieved earnings before interest, taxes, depreciation and amortisation (EBITDA) of $58.4 million, which compared very favourably to its $67.8 million loss in 2022.
This saw the ASX 200 biotech stock deliver its inaugural full-year profit of $5.2 million after tax, compared to the net loss after tax of $104.1 million in 2022.
Telix CEO Christian Behrenbruch commented at the time:
We have achieved profitability while intensively investing in the development of our late-stage assets and the scale-up of our commercial infrastructure and marketing activity.
This has resulted in Telix capturing a meaningful market share in the growing urology imaging market whilst laying the foundation for our next commercial products.
And growth has continued for the first half of 2024, with H1 revenue up 65% year on year to $364 million and gross margins improving by 3% to 66%.
