It hasn't been the best quarter for mCloud Technologies Corp. (CVE:MCLD) shareholders, since the share price has fallen 28% in that time. But that doesn't change the fact that the returns over the last year have been pleasing. Looking at the full year, the company has easily bested an index fund by gaining 18%.
Because mCloud Technologies 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year mCloud Technologies saw its revenue grow by 421%. That's a head and shoulders above most loss-making companies. While the share price gain of 18% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at mCloud Technologies. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at mCloud Technologies's financial health with this free report on its balance sheet.
A Different Perspective
mCloud Technologies boasts a total shareholder return of 18% for the last year. We regret to report that the share price is down 28% over ninety days. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. It's always interesting to track share price performance over the longer term. But to understand mCloud Technologies better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 5 warning signs with mCloud Technologies (at least 2 which are potentially serious) , and understanding them should be part of your investment process.
We will like mCloud Technologies 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 CA exchanges.
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