Rockwell Medical (NASDAQ:RMTI) shareholder returns have been stellar, earning 181% in 1 year
Unless you borrow money to invest, the potential losses are limited. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example Rockwell Medical, Inc. (NASDAQ:RMTI). Its share price is already up an impressive 181% in the last twelve months. It's also good to see the share price up 169% over the last quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report. In contrast, the longer term returns are negative, since the share price is 82% lower than it was three years ago.
Since the stock has added US$12m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns.
View our latest analysis for Rockwell Medical
Rockwell Medical isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last year Rockwell Medical saw its revenue grow by 22%. That's a fairly respectable growth rate. The revenue growth is decent but the share price had an even better year, gaining 181%. If the profitability is on the horizon then now could be a very exciting time to be a shareholder. But investors need to be wary of how the 'fear of missing out' could influence them to buy without doing thorough research.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at Rockwell Medical's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Rockwell Medical shareholders have received a total shareholder return of 181% over one year. There's no doubt those recent returns are much better than the TSR loss of 14% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Rockwell Medical better, we need to consider many other factors. To that end, you should learn about the 5 warning signs we've spotted with Rockwell Medical (including 1 which is a bit concerning) .
We will like Rockwell Medical 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 American exchanges.
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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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