If You Had Bought Marlborough Wine Estates Group (NZSE:MWE) Shares A Year Ago You'd Have Earned 46% Returns

Marlborough Wine Estates Group Limited (NZSE:MWE) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But that doesn't change the fact that the returns over the last year have been pleasing. Looking at the full year, the company has easily bested an index fund by gaining 46%.

See our latest analysis for Marlborough Wine Estates Group

While Marlborough Wine Estates Group 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.

Marlborough Wine Estates Group grew its revenue by 13% last year. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 46%. That's not a standout result, but it is solid - much like the level of revenue growth. It could be worth keeping an eye on this one, especially if growth accelerates.

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

If you are thinking of buying or selling Marlborough Wine Estates Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Marlborough Wine Estates Group shareholders have received a total shareholder return of 46% over one year. Notably the five-year annualised TSR loss of 4% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Marlborough Wine Estates Group better, we need to consider many other factors. Take risks, for example - Marlborough Wine Estates Group has 5 warning signs (and 1 which shouldn't be ignored) we think you should know about.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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

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