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Imagine Owning MDJM (NASDAQ:MDJH) And Wondering If The 38% Share Price Slide Is Justified

Simply Wall St

MDJM Ltd. (NASDAQ:MDJH) shareholders should be happy to see the share price up 12% in the last month. But in truth the last year hasn't been good for the share price. After all, the share price is down 38% in the last year, significantly under-performing the market.

View our latest analysis for MDJM

MDJM isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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 year MDJM saw its revenue grow by 23%. We think that is pretty nice growth. Unfortunately that wasn't good enough to stop the share price dropping 38%. You might even wonder if the share price was previously over-hyped. But if revenue keeps growing, then at a certain point the share price would likely follow.

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

NasdaqCM:MDJH Income Statement, January 7th 2020
NasdaqCM:MDJH Income Statement, January 7th 2020

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While MDJM shareholders are down 38% for the year, the market itself is up 29%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. It's great to see a nice little 11% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.

We will like MDJM better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.