Yahoo Finance Even after rising 4.4% this past week, Liberty Latin America (NASDAQ:LILA) shareholders are still down 65% over the past five years
Statistically speaking, long term investing is a profitable endeavour. But along the way some stocks are going to perform badly. To wit, the Liberty Latin America Ltd. (NASDAQ:LILA) share price managed to fall 65% over five long years. That's not a lot of fun for true believers. In contrast, the stock price has popped 8.3% in the last thirty days.
The recent uptick of 4.4% could be a positive sign of things to come, so let's take a look at historical fundamentals.
See our latest analysis for Liberty Latin America
Given that Liberty Latin America 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.
In the last half decade, Liberty Latin America saw its revenue increase by 6.0% per year. That's a fairly respectable growth rate. The share price return isn't so respectable with an annual loss of 10% over the period. It seems probably that the business has failed to live up to initial expectations. That could lead to an opportunity if the company is going to become profitable sooner rather than later.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. So we recommend checking out this free report showing consensus forecasts
A Different Perspective
Investors in Liberty Latin America had a tough year, with a total loss of 14%, against a market gain of about 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, longer term shareholders are suffering worse, given the loss of 10% doled out over the last five years. We'd need to see some sustained improvements in the key metrics before we could muster much enthusiasm. Investors who like to make money usually check up on insider purchases, such as the price paid, and total amount bought. You can find out about the insider purchases of Liberty Latin America by clicking this link.
Liberty Latin America is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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.
