The FTSE 250 hasn’t been a stellar performer of late, coming in essentially flat over the last five years. However, for some stock pickers, the returns have been far more impressive.

Take 4imprint Group (LSE:FOUR) as a prime example to consider. The promotional products distributor has delivered an average compounded total return of 23.9% a year over the last 15 years – almost triple the long-term average of the UK stock market.

Just to put this into perspective, a £500 initial investment made in 2011 is now worth close to £12,446.

So with its share price currently hovering around 3,590p, is it worth investing £503 to snap up 14 shares today?

What’s behind the 15 years of market-beating returns?

As a quick crash course, 4imprint is the leading direct marketer of branded promotional products in North America. Think branded mugs, tote bags, and polo shirts emblazoned with a company’s logo and given away to employees, customers, or at events.

Obviously, that doesn’t exactly sound like a high-growth enterprise. But the business model’s quietly exceptional.

4imprint designs and markets the products, while third-party suppliers handle manufacturing and fulfilment. That capital-light structure means almost all revenue converts into free cash flow, which is then reinvested to generate more growth, in a self-sustaining, value-building loop.

Yet despite dominating its niche for over a decade, 4imprint still only holds around a 5% share of a highly fragmented $25bn North American market. In other words, the impressive growth seen so far could be just the tip of the iceberg.

So it’s no wonder that five out of six institutional analysts currently recommend the stock as either a Buy or Outperform. But what risks should investors be aware of?

Can the growth really continue?

While 4imprint’s long-term trajectory looks promising, it’s impossible to ignore the near-term challenges that management has encountered.

The firm’s 2025 results showed revenue fell to $1.35bn from $1.37bn, with pre-tax profit dipping to $150.8m from $154.4m as new customer orders softened.

This perfectly highlights the group’s cyclical nature. After all, when economic conditions are tough, discretionary corporate spending is often the first thing put up on the chopping block. And this impact has only been compounded by the emergence of US tariffs.

The core risk here is straightforward. 4imprint sources products globally and sells almost entirely into the US market. If tariffs escalate further or US business confidence deteriorates sharply, both order volumes and margins could come under renewed pressure.

The bottom line

Few FTSE 250 stocks have compounded wealth as consistently as 4imprint over 15 years. The capital-light model, dominant market position, and vast untapped runway are as compelling today as they’ve ever been.

The tariff headwind’s real and shouldn’t be dismissed. But for long-term investors comfortable with short-term noise, I think this dip could represent a genuinely interesting entry point to think about regarding one of the market’s most reliable compounders.