The last three months have been tough on Mirriad Advertising plc (LON:MIRI) shareholders, who have seen the share price decline a rather worrying 33%. Despite this, the stock is a strong performer over the last year, no doubt about that. Like an eagle, the share price soared 130% in that time. So it is important to view the recent reduction in price through that lense. The real question is whether the business is trending in the right direction.
Because Mirriad Advertising made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over the last twelve months, Mirriad Advertising's revenue grew by 91%. That's a head and shoulders above most loss-making companies. And the share price has responded, gaining 130% as we previously mentioned. That sort of revenue growth is bound to attract attention, even if the company doesn't turn a profit. The strong share price rise indicates optimism, so there may be a better opportunity for buyers as the hype fades a bit.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Mirriad Advertising's financial health with this free report on its balance sheet.
A Different Perspective
Pleasingly, Mirriad Advertising's total shareholder return last year was 130%. That gain actually surpasses the 7% TSR it generated (per year) over three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Mirriad Advertising better, we need to consider many other factors. For instance, we've identified 4 warning signs for Mirriad Advertising that you should be aware of.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.
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