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The past five years for Maui Land & Pineapple Company (NYSE:MLP) investors has not been profitable

We think intelligent long term investing is the way to go. But along the way some stocks are going to perform badly. To wit, the Maui Land & Pineapple Company, Inc. (NYSE:MLP) share price managed to fall 50% over five long years. That's an unpleasant experience for long term holders. Unfortunately the share price momentum is still quite negative, with prices down 11% in thirty days. However, we note the price may have been impacted by the broader market, which is down 4.7% in the same time period.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Maui Land & Pineapple Company

Given that Maui Land & Pineapple Company didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

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In the last five years Maui Land & Pineapple Company saw its revenue shrink by 37% per year. That's definitely a weaker result than most pre-profit companies report. It seems appropriate, then, that the share price slid about 8% annually during that time. It's fair to say most investors don't like to invest in loss making companies with falling revenue. This looks like a really risky stock to buy, at a glance.

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
earnings-and-revenue-growth

This free interactive report on Maui Land & Pineapple Company's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Although it hurts that Maui Land & Pineapple Company returned a loss of 3.8% in the last twelve months, the broader market was actually worse, returning a loss of 18%. What is more upsetting is the 8% per annum loss investors have suffered over the last half decade. This sort of share price action isn't particularly encouraging, but at least the losses are slowing. 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. Even so, be aware that Maui Land & Pineapple Company is showing 2 warning signs in our investment analysis , and 1 of those is concerning...

Of course Maui Land & Pineapple Company may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.