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Investors in N-able (NYSE:NABL) have unfortunately lost 25% over the last year

·3 min read

While not a mind-blowing move, it is good to see that the N-able, Inc. (NYSE:NABL) share price has gained 13% in the last three months. But in truth the last year hasn't been good for the share price. In fact, the price has declined 25% in a year, falling short of the returns you could get by investing in an index fund.

Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.

See our latest analysis for N-able

While N-able made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. It would be hard to believe in a more profitable future without growing revenues.

N-able grew its revenue by 11% over the last year. That's not a very high growth rate considering it doesn't make profits. Given this fairly low revenue growth (and lack of profits), it's not particularly surprising to see the stock down 25% in a year. In a hot market it's easy to forget growth is the life-blood of a loss making company. But if you buy a loss making company then you could become a loss making investor.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

We know that N-able has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for N-able in this interactive graph of future profit estimates.

A Different Perspective

N-able shareholders are down 25% for the year, even worse than the market loss of 8.9%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 13% rebound in the last three months. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). It's always interesting to track share price performance over the longer term. But to understand N-able better, we need to consider many other factors. For instance, we've identified 1 warning sign for N-able that you should be aware of.

We will like N-able 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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