Investing in WideOpenWest (NYSE:WOW) three years ago would have delivered you a 120% gain
WideOpenWest, Inc. (NYSE:WOW) shareholders might be concerned after seeing the share price drop 16% in the last month. But in three years the returns have been great. In three years the stock price has launched 120% higher: a great result. To some, the recent share price pullback wouldn't be surprising after such a good run. The thing to consider is whether the underlying business is doing well enough to support the current price.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
See our latest analysis for WideOpenWest
Because WideOpenWest 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
WideOpenWest actually saw its revenue drop by 10% per year over three years. So we wouldn't have expected the share price to gain 30% per year, but it has. It's a good reminder that expectations about the future, not the past history, always impact share prices.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling WideOpenWest stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that WideOpenWest rewarded shareholders with a total shareholder return of 17% over the last year. The TSR has been even better over three years, coming in at 30% per year. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.
We will like WideOpenWest 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.
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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.
