The Mammoth Energy Services (NASDAQ:TUSK) Share Price Has Gained 115%, So Why Not Pay It Some Attention?

The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But if you pick the right business to buy shares in, you can make more than you can lose. Take, for example Mammoth Energy Services, Inc. (NASDAQ:TUSK). Its share price is already up an impressive 115% in the last twelve months. It's up an even more impressive 200% over the last quarter. Unfortunately the longer term returns are not so good, with the stock falling 76% in the last three years.

Check out our latest analysis for Mammoth Energy Services

Because Mammoth Energy Services 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Mammoth Energy Services actually shrunk its revenue over the last year, with a reduction of 65%. We're a little surprised to see the share price pop 115% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. It's quite likely the revenue fall was already priced in, anyway.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

If you are thinking of buying or selling Mammoth Energy Services stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Mammoth Energy Services rewarded shareholders with a total shareholder return of 115% over the last year. This recent result is much better than the 21% drop suffered by shareholders each year (on average) over the last three. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Case in point: We've spotted 2 warning signs for Mammoth Energy Services you should be aware of, and 1 of them is a bit concerning.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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