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Mirriad Advertising (LON:MIRI) Shareholders Booked A 44% Gain In The Last Year

Simply Wall St

If you want to compound wealth in the stock market, you can do so by buying an index fund. But investors can boost returns by picking market-beating companies to own shares in. To wit, the Mirriad Advertising plc (LON:MIRI) share price is 44% higher than it was a year ago, much better than the market decline of around 10% (not including dividends) in the same period. So that should have shareholders smiling. We'll need to follow Mirriad Advertising for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long.

See our latest analysis for Mirriad Advertising

Because Mirriad Advertising 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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 twelve months, Mirriad Advertising's revenue grew by 174%. That's a head and shoulders above most loss-making companies. While the share price gain of 44% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. So quite frankly it could be a good time to investigate Mirriad Advertising in some detail. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

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

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

A Different Perspective

It's nice to see that Mirriad Advertising shareholders have gained 44% over the last year. And the share price momentum remains respectable, with a gain of 20% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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 4 warning signs for Mirriad Advertising you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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