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Introducing KVH Industries (NASDAQ:KVHI), The Stock That Dropped 10% In The Last Five Years

Simply Wall St

KVH Industries, Inc. (NASDAQ:KVHI) shareholders should be happy to see the share price up 11% in the last month. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 10% in that half decade.

See our latest analysis for KVH Industries

Given that KVH Industries 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. 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 five years KVH Industries saw its revenue shrink by 1.7% per year. While far from catastrophic that is not good. The stock hasn't done well for shareholders in the last five years, falling 2.1%, annualized. Unfortunately, though, it makes sense given the lack of either profits or revenue growth. Without profits, its hard to see how shareholders win if the revenue keeps falling.

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

NasdaqGS:KVHI Income Statement, December 13th 2019

If you are thinking of buying or selling KVH Industries stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

KVH Industries shareholders gained a total return of 8.5% during the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 2.1% per year, over five years. So this might be a sign the business has turned its fortunes around. Before spending more time on KVH Industries it might be wise to click here to see if insiders have been buying or selling shares.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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.