Yahoo Finance Investors ignore increasing losses at MaxCyte (LON:MXCT) as stock jumps 12% this past week
It hasn't been the best quarter for MaxCyte, Inc. (LON:MXCT) shareholders, since the share price has fallen 13% in that time. But that doesn't undermine the fantastic longer term performance (measured over five years). To be precise, the stock price is 626% higher than it was five years ago, a wonderful performance by any measure. So we don't think the recent decline in the share price means its story is a sad one. But the real question is whether the business fundamentals can improve over the long term. Anyone who held for that rewarding ride would probably be keen to talk about it.
The past week has proven to be lucrative for MaxCyte investors, so let's see if fundamentals drove the company's five-year performance.
View our latest analysis for MaxCyte
Because MaxCyte made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
For the last half decade, MaxCyte can boast revenue growth at a rate of 20% per year. That's well above most pre-profit companies. Fortunately, the market has not missed this, and has pushed the share price up by 49% per year in that time. Despite the strong run, top performers like MaxCyte have been known to go on winning for decades. On the face of it, this looks lke a good opportunity, although we note sentiment seems very positive already.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
This free interactive report on MaxCyte's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that MaxCyte has rewarded shareholders with a total shareholder return of 112% in the last twelve months. That gain is better than the annual TSR over five years, which is 49%. 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. It's always interesting to track share price performance over the longer term. But to understand MaxCyte better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with MaxCyte (including 1 which is a bit concerning) .
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 GB exchanges.
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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