Tenable Holdings (NASDAQ:TENB) shareholder returns have been favorable, earning 63% in 3 years

By
Simply Wall St
Published
February 25, 2022
NasdaqGS:TENB
Source: Shutterstock

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 Tenable Holdings, Inc. (NASDAQ:TENB) share price is up 63% in the last three years, clearly besting the market return of around 50% (not including dividends). On the other hand, the returns haven't been quite so good recently, with shareholders up just 25%.

Since the stock has added US$357m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.

Check out our latest analysis for Tenable Holdings

Given that Tenable Holdings didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

In the last 3 years Tenable Holdings saw its revenue grow at 22% per year. That's much better than most loss-making companies. The share price rise of 18% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. If that's the case, now might be the time to take a close look at Tenable Holdings. If the company is trending towards profitability then it could be very interesting.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGS:TENB Earnings and Revenue Growth February 25th 2022

Tenable Holdings is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

We're pleased to report that Tenable Holdings rewarded shareholders with a total shareholder return of 25% over the last year. That's better than the annualized TSR of 18% over the last three years. These improved returns may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Tenable Holdings better, we need to consider many other factors. Take risks, for example - Tenable Holdings has 3 warning signs (and 1 which shouldn't be ignored) we think you should know about.

Of course Tenable Holdings 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 US exchanges.

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