Maiden Holdings (NASDAQ:MHLD) spikes 11% this week, taking five-year gains to 304%

Buying shares in the best businesses can build meaningful wealth for you and your family. And we've seen some truly amazing gains over the years. Don't believe it? Then look at the Maiden Holdings, Ltd. (NASDAQ:MHLD) share price. It's 304% higher than it was five years ago. And this is just one example of the epic gains achieved by some long term investors. It's even up 11% in the last week.

The past week has proven to be lucrative for Maiden Holdings investors, so let's see if fundamentals drove the company's five-year performance.

View our latest analysis for Maiden Holdings

Maiden Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn't make profits, we'd generally hope to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last half decade Maiden Holdings' revenue has actually been trending down at about 69% per year. So it's pretty surprising to see that the share price is up 32% per year. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. At the risk of upsetting holders, this does suggest that hope for a better future is playing a significant role in the share price action.

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

Take a more thorough look at Maiden Holdings' financial health with this free report on its balance sheet.

A Different Perspective

Maiden Holdings provided a TSR of 14% over the last twelve months. Unfortunately this falls short of the market return. If we look back over five years, the returns are even better, coming in at 32% per year for five years. Maybe the share price is just taking a breather while the business executes on its growth strategy. Most investors take the time to check the data on insider transactions. You can click here to see if insiders have been buying or selling.

But note: Maiden Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com