U.S. markets open in 1 hour 7 minutes
  • S&P Futures

    4,122.75
    -3.75 (-0.09%)
     
  • Dow Futures

    33,689.00
    -14.00 (-0.04%)
     
  • Nasdaq Futures

    13,754.50
    -39.75 (-0.29%)
     
  • Russell 2000 Futures

    2,188.10
    +4.10 (+0.19%)
     
  • Crude Oil

    61.23
    -1.44 (-2.30%)
     
  • Gold

    1,783.80
    +5.40 (+0.30%)
     
  • Silver

    26.11
    +0.27 (+1.04%)
     
  • EUR/USD

    1.2012
    -0.0029 (-0.24%)
     
  • 10-Yr Bond

    1.5620
    0.0000 (0.00%)
     
  • Vix

    18.46
    +1.17 (+6.77%)
     
  • GBP/USD

    1.3923
    -0.0014 (-0.10%)
     
  • USD/JPY

    108.0760
    +0.0060 (+0.01%)
     
  • BTC-USD

    54,911.18
    -969.28 (-1.73%)
     
  • CMC Crypto 200

    1,257.97
    +23.55 (+1.91%)
     
  • FTSE 100

    6,878.47
    +18.60 (+0.27%)
     
  • Nikkei 225

    28,508.55
    -591.83 (-2.03%)
     

A Look At Mohawk Group Holdings' (NASDAQ:MWK) Share Price Returns

  • Oops!
    Something went wrong.
    Please try again later.
Simply Wall St
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.

Mohawk Group Holdings, Inc. (NASDAQ:MWK) shareholders will doubtless be very grateful to see the share price up 38% in the last quarter. But that doesn't change the fact that the returns over the last year have been less than pleasing. The cold reality is that the stock has dropped 13% in one year, under-performing the market.

See our latest analysis for Mohawk Group Holdings

Given that Mohawk Group Holdings 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Mohawk Group Holdings grew its revenue by 64% over the last year. That's a strong result which is better than most other loss making companies. The share price drop of 13% over twelve months would be considered disappointing by many, so you might argue the company is getting little credit for its impressive revenue growth. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized. Our brains have evolved to think in linear fashion, so there's value in learning to recognize exponential growth. We are, in some ways, simply the wisest of the monkeys.

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

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

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So we recommend checking out this free report showing consensus forecasts

A Different Perspective

Given that the market gained 24% in the last year, Mohawk Group Holdings shareholders might be miffed that they lost 13%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. It's great to see a nice little 38% 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). I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Mohawk Group Holdings you should be aware of.

Mohawk Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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.

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. 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.

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