The MoneyGram International (NASDAQ:MGI) Share Price Has Gained 213%, So Why Not Pay It Some Attention?

It might be of some concern to shareholders to see the MoneyGram International, Inc. (NASDAQ:MGI) share price down 28% in the last month. But that doesn't detract from the splendid returns of the last year. During that period, the share price soared a full 213%. So it may be that the share price is simply cooling off after a strong rise. Investors should be wondering whether the business itself has the fundamental value required to continue to drive gains.

Check out our latest analysis for MoneyGram International

Because MoneyGram International 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

MoneyGram International actually shrunk its revenue over the last year, with a reduction of 5.3%. So we would not have expected the share price to rise 213%. 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 MoneyGram International stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's good to see that MoneyGram International has rewarded shareholders with a total shareholder return of 213% in the last twelve months. That certainly beats the loss of about 0.2% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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. For example, we've discovered 2 warning signs for MoneyGram International (1 makes us a bit uncomfortable!) that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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