Core Molding Technologies, Inc. (NYSEMKT:CMT) shareholders will doubtless be very grateful to see the share price up 119% in the last quarter. But that is small recompense for the exasperating returns over three years. Regrettably, the share price slid 55% in that period. So it is really good to see an improvement. Perhaps the company has turned over a new leaf.
Core Molding Technologies isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 three years, Core Molding Technologies grew revenue at 18% per year. That's a fairly respectable growth rate. So some shareholders would be frustrated with the compound loss of 16% per year. The market must have had really high expectations to be disappointed with this progress. So this is one stock that might be worth investigating further, or even adding to your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. Dive deeper into the earnings by checking this interactive graph of Core Molding Technologies' earnings, revenue and cash flow.
A Different Perspective
It's nice to see that Core Molding Technologies shareholders have received a total shareholder return of 55% over the last year. Notably the five-year annualised TSR loss of 7.6% per year compares very unfavourably with the recent share price performance. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Core Molding Technologies better, we need to consider many other factors. Even so, be aware that Core Molding Technologies is showing 4 warning signs in our investment analysis , and 1 of those is concerning...
Core Molding Technologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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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