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Mithra Pharmaceuticals S.A. (EBR:MITRA) shareholders might be concerned after seeing the share price drop 12% in the last quarter. But that doesn't undermine the rather lovely longer-term return, if you measure over the last three years. Indeed, the share price is up a very strong 174% in that time. It's not uncommon to see a share price retrace a bit, after a big gain. If the business can perform well for years to come, then the recent drop could be an opportunity.
Given that Mithra Pharmaceuticals 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Mithra Pharmaceuticals's revenue trended up 40% each year over three years. That's much better than most loss-making companies. Meanwhile, the share price performance has been pretty solid at 40% compound over three years. This suggests the market has recognized the progress the business has made, at least to a significant degree. Nonetheless, we'd say Mithra Pharmaceuticals is still worth investigating - successful businesses can often keep growing for long periods.
The graphic below shows how revenue and earnings have changed as management guided the business forward. If you want to see cashflow, you can click on the chart.
If you are thinking of buying or selling Mithra Pharmaceuticals stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
We're pleased to report that Mithra Pharmaceuticals rewarded shareholders with a total shareholder return of 10.0% over the last year. That falls short of the 40% it has made, for shareholders, each year, over three years. You could get a better understanding of Mithra Pharmaceuticals's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on BE exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at [email protected]. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.