Can You Imagine How RADCOM's (NASDAQ:RDCM) Shareholders Feel About The 57% Share Price Increase?

RADCOM Ltd. (NASDAQ:RDCM) shareholders might be concerned after seeing the share price drop 13% in the last quarter. Looking on the brighter side, the stock is actually up over twelve months. But to be blunt its return of 57% fall short of what you could have got from an index fund (around 75%).

View our latest analysis for RADCOM

Given that RADCOM 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last year RADCOM saw its revenue grow by 14%. That's not great considering the company is losing money. It's probably fair to say that the modest growth is reflected in the modest share price gain of 57%. It might be worth thinking about how long it will take the company to turn a profit.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

RADCOM shareholders gained a total return of 57% during the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 5% endured over half a decade. So this might be a sign the business has turned its fortunes around. 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 instance, we've identified 2 warning signs for RADCOM (1 is significant) that you should be aware of.

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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