If You Had Bought Slavneft-Megionneftegas' (MCX:MFGS) Shares Five Years Ago You Would Be Down 43%

While not a mind-blowing move, it is good to see that the Joint-stock company Slavneft-Megionneftegas (MCX:MFGS) share price has gained 12% in the last three months. But that doesn't change the fact that the returns over the last five years have been less than pleasing. In fact, the share price is down 43%, which falls well short of the return you could get by buying an index fund.

View our latest analysis for Slavneft-Megionneftegas

Given that Slavneft-Megionneftegas 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 expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Over five years, Slavneft-Megionneftegas grew its revenue at 19% per year. That's well above most other pre-profit companies. The share price drop of 7% per year over five years would be considered let down. So you might argue the Slavneft-Megionneftegas should get more credit for its rather impressive revenue growth over the period. So now is probably an apt time to look closer at the stock, if you think it has potential.

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

If you are thinking of buying or selling Slavneft-Megionneftegas stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Slavneft-Megionneftegas provided a TSR of 16% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 7% per year, over five years. So this might be a sign the business has turned its fortunes around. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Slavneft-Megionneftegas (1 is a bit unpleasant!) that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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