The one-year profit decline likely contributed to Maven Wireless Sweden’s ( STO:MAVEN ) shareholder losses of 35% during that period
It’s easy to match the total market return by buying an index fund. While individual stocks can be big winners, many more fail to generate satisfactory returns. Unfortunately Maven Wireless Sweden AB (Publ) (STO:MAVEN) share price fell 35% over twelve months. That is well below the market decline of 23%. Maven Wireless Sweden has not been listed for a long time, so while we are wary of recent listings that perform poorly, it may still show over time. Unfortunately, the share price is still quite negative, with prices down 17% in thirty days.
After losing 12% in the past week, it’s worth examining the company’s fundamentals to see what we can conclude from past performance.
Before we look at the performance, you might want to know that our analysis indicates that MAVEN is potentially overrated!
Since Maven Wireless Sweden was loss-making over the past twelve months, we think the market is probably more focused on revenue and revenue growth, at least for now. Generally speaking, for-profit companies are expected to grow revenue every year, and at a good clip. That’s because rapid revenue growth can easily be extrapolated to forecast profits, often of significant size.
Over the past twelve months, Maven Wireless Sweden has increased its revenue by 57%. That’s a strong result that’s better than most other loss-making companies. The share price drop of 35% over twelve months would be considered a disappointment by many, so one could argue that the company gets little credit for its impressive revenue growth. On the bright side, if this company moves earnings in the right direction, such top-line growth could be a possibility. Our monkey brains have not evolved to think exponentially, so people tend to underestimate companies that have exponential growth.
The image below shows how revenue and earnings have tracked over time (if you click on the image, you can see greater detail).
The strength of the balance sheet is crucial. It might be well worth taking a look at ours free explain how its financial position has changed over time.
Another perspective
Maven Wireless Sweden’s shareholders were down 35% for the year, even worse than the market’s 23% loss. It’s disappointing, but it’s worth remembering that the market-wide selloff wouldn’t have helped. The share price decline has continued over the past three months, down 14%, indicating an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poorly performing stock unless the business itself has clearly improved. It is always interesting to follow the share price development in the longer term. But to understand Maven Wireless Sweden better, we need to consider many other factors. Example: We have discovered 3 warning signs for Maven Wireless Sweden you should be aware of, and 2 of them don’t sit well with us.
If you prefer to check out another company – one with potentially superior financials – then don’t miss this one free list of companies that have proven they can increase revenue.
Please note that the market return reported in this article reflects the market weighted average return for shares currently traded on SE 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 by 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 shares and does not take into account your goals or your financial situation. We strive to provide you with long-term focused analysis driven by fundamental data. Note that our analysis may not take into account recent price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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