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Investors Who Bought MTBC (NASDAQ:MTBC) Shares Three Years Ago Are Now Up 371%

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Simply Wall St
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It hasn't been the best quarter for MTBC, Inc. (NASDAQ:MTBC) shareholders, since the share price has fallen 16% in that time. But over three years the performance has been really wonderful. Over that time, we've been excited to watch the share price climb an impressive 371%. So the recent fall doesn't do much to dampen our respect for the business. The share price action could signify that the business itself is dramatically improved, in that time.

View our latest analysis for MTBC

Because MTBC is loss-making, 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years MTBC has grown its revenue at 37% annually. That's much better than most loss-making companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 68% per year, over the same period. It's always tempting to take profits after a share price gain like that, but high-growth companies like MTBC can sometimes sustain strong growth for many years. So we'd recommend you take a closer look at this one, or even put it on your watchlist.

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

NasdaqGM:MTBC Income Statement, October 24th 2019
NasdaqGM:MTBC Income Statement, October 24th 2019

This free interactive report on MTBC's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

While the broader market gained around 14% in the last year, MTBC shareholders lost 18%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn't be so upset, since they would have made 4.4%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. If you would like to research MTBC in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.

But note: MTBC may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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

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.

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. Thank you for reading.