MobileIron, Inc. (NASDAQ:MOBL) shareholders have seen the share price descend 14% over the month. But over three years, the returns would have left most investors smiling To wit, the share price did better than an index fund, climbing 63% during that period.
MobileIron isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years MobileIron has grown its revenue at 7.9% annually. Considering the company is losing money, we think that rate of revenue growth is uninspiring. In that time the share price is up 18% per year, which is not unreasonable given the revenue gorwth. Ultimately, the important thing is whether the company is trending to profitability. In this sort of situation it can be worth putting the stock on your watchlist. If it can become profitable, then even moderate revenue growth could grow profits quickly.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. You can see what analysts are predicting for MobileIron in this interactive graph of future profit estimates.
A Different Perspective
It's good to see that MobileIron has rewarded shareholders with a total shareholder return of 39% in the last twelve months. That certainly beats the loss of about 7.0% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of MobileIron by clicking this link.
There are plenty of other companies that have insiders buying up shares. You probably do 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 US exchanges.
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