Montauk Renewables, Inc. (NASDAQ:MNTK) shareholders might be concerned after seeing the share price drop 26% in the last month. But that doesn't change the reality that over twelve months the stock has done really well. After all, the share price is up a market-beating 52% in that time.

Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business.

See our latest analysis for Montauk Renewables

We don't think that Montauk Renewables' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Over the last twelve months, Montauk Renewables' revenue grew by 31%. That's a fairly respectable growth rate. While the share price performed well, gaining 52% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

We know that Montauk Renewables has improved its bottom line lately, but what does the future have in store? If you are thinking of buying or selling Montauk Renewables stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

It's nice to see that Montauk Renewables shareholders have gained 52% over the last year. Unfortunately the share price is down 1.0% over the last quarter. Shorter term share price moves often don't signify much about the business itself. You could get a better understanding of Montauk Renewables' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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. 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.

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