MiMedx Group (NASDAQ:MDXG) shareholder returns have been decent, earning 39% in 3 years

By buying an index fund, you can roughly match the market return with ease. But if you pick the right individual stocks, you could make more than that. For example, the MiMedx Group, Inc. (NASDAQ:MDXG) share price is up 39% in the last three years, clearly besting the market return of around 22% (not including dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 21% in the last year.

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

View our latest analysis for MiMedx Group

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During three years of share price growth, MiMedx Group moved from a loss to profitability. That would generally be considered a positive, so we'd expect the share price to be up.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

It is of course excellent to see how MiMedx Group has grown profits over the years, but the future is more important for shareholders. Take a more thorough look at MiMedx Group's financial health with this free report on its balance sheet.

A Different Perspective

MiMedx Group shareholders gained a total return of 21% during the year. But that return falls short of the market. On the bright side, that's still a gain, and it's actually better than the average return of 7% over half a decade This suggests the company might be improving over time. 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 3 warning signs for MiMedx Group you should be aware of, and 2 of them are concerning.

Of course MiMedx Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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.