Would Shareholders Who Purchased LiveHire's (ASX:LVH) Stock Three Years Be Happy With The Share price Today?

LiveHire Limited (ASX:LVH) shareholders should be happy to see the share price up 14% in the last month. But the last three years have seen a terrible decline. The share price has sunk like a leaky ship, down 75% in that time. So it sure is nice to see a bit of an improvement. Only time will tell if the company can sustain the turnaround.

See our latest analysis for LiveHire

Given that LiveHire 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over three years, LiveHire grew revenue at 42% per year. That is faster than most pre-profit companies. So why has the share priced crashed 20% per year, in the same time? The share price makes us wonder if there is an issue with profitability. Sometimes fast revenue growth doesn't lead to profits. If the company is low on cash, it may have to raise capital soon.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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. This free report showing analyst forecasts should help you form a view on LiveHire

A Different Perspective

It's nice to see that LiveHire shareholders have gained 24% (in total) over the last year. This recent result is much better than the 20% drop suffered by shareholders each year (on average) over the last three. It could well be that the business has turned around -- or else regained the confidence of investors. It's always interesting to track share price performance over the longer term. But to understand LiveHire better, we need to consider many other factors. Take risks, for example - LiveHire has 3 warning signs we think you should be aware of.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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

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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. 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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