Those Who Purchased Mobile Tornado Group (LON:MBT) Shares Five Years Ago Have A 53% Loss To Show For It

In This Article:

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. For example, after five long years the Mobile Tornado Group plc (LON:MBT) share price is a whole 53% lower. That's an unpleasant experience for long term holders. Furthermore, it's down 26% in about a quarter. That's not much fun for holders.

See our latest analysis for Mobile Tornado Group

Because Mobile Tornado Group 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. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last half decade, Mobile Tornado Group saw its revenue increase by 10% per year. That's a fairly respectable growth rate. The share price return isn't so respectable with an annual loss of 14% over the period. That suggests the market is disappointed with the current growth rate. That could lead to an opportunity if the company is going to become profitable sooner rather than later.

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

AIM:MBT Income Statement, January 16th 2020
AIM:MBT Income Statement, January 16th 2020

It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. It might be well worthwhile taking a look at our free report on Mobile Tornado Group's earnings, revenue and cash flow.

A Different Perspective

Mobile Tornado Group provided a TSR of 6.3% over the last twelve months. But that return falls short of the market. But at least that's still a gain! Over five years the TSR has been a reduction of 14% per year, over five years. It could well be that the business is stabilizing. It's always interesting to track share price performance over the longer term. But to understand Mobile Tornado Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 6 warning signs for Mobile Tornado Group (of which 1 is a bit unpleasant!) you should know about.

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 GB exchanges.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.