Shareholders Are Thrilled That The Maxar Technologies (NYSE:MAXR) Share Price Increased 137%
Unfortunately, investing is risky – companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Maxar Technologies Inc. (NYSE:MAXR) share price has soared 137% in the last year. Most would be very happy with that, especially in just one year! On top of that, the share price is up 27% in about a quarter. In contrast, the longer term returns are negative, since the share price is 58% lower than it was three years ago.
View our latest analysis for Maxar Technologies
Maxar Technologies wasn’t profitable in the last twelve months, it is unlikely we’ll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That’s because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year Maxar Technologies saw its revenue grow by 8.8%. That’s not a very high growth rate considering it doesn’t make profits. So we wouldn’t have expected the share price to rise by 137%. The business will need a lot more growth to justify that increase. We’re not so sure that revenue growth is driving the market optimism about the stock.
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 Maxar Technologies stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It’s nice to see that Maxar Technologies shareholders have received a total shareholder return of 138% over the last year. Of course, that includes the dividend. There’s no doubt those recent returns are much better than the TSR loss of 9% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It’s always interesting to track share price performance over the longer term. But to understand Maxar Technologies better, we need to consider many other factors. Take risks, for example – Maxar Technologies has 2 warning signs we think you should be aware of.
Of course Maxar Technologies 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.
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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