Yahoo Finance Investing in Maui Land & Pineapple Company (NYSE:MLP) three years ago would have delivered you a 24% gain
Buying a low-cost index fund will get you the average market return. But if you invest in individual stocks, some are likely to underperform. Unfortunately for shareholders, while the Maui Land & Pineapple Company, Inc. (NYSE:MLP) share price is up 24% in the last three years, that falls short of the market return. Zooming in, the stock is up a respectable 8.4% in the last year.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
View our latest analysis for Maui Land & Pineapple Company
While Maui Land & Pineapple Company 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.
Over the last three years Maui Land & Pineapple Company has grown its revenue at 36% annually. That's much better than most loss-making companies. While long-term shareholders have made money, the 8% per year gain over three years isn't that great given the rising market. Generally, we'd expect a stronger share price, given the impressive revenue growth. It could be that the stock was previously over-priced, or its losses might worry the market. But if you're looking for growth stocks, there might be an opportunity here.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
If you are thinking of buying or selling Maui Land & Pineapple Company stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Maui Land & Pineapple Company shareholders have received a total shareholder return of 8.4% over one year. That gain is better than the annual TSR over five years, which is 3%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Maui Land & Pineapple Company you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
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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