Yahoo Finance The five-year returns have been massive for MongoDB (NASDAQ:MDB) shareholders despite underlying losses increasing
Long term investing can be life changing when you buy and hold the truly great businesses. While not every stock performs well, when investors win, they can win big. For example, the MongoDB, Inc. (NASDAQ:MDB) share price is up a whopping 475% in the last half decade, a handsome return for long term holders. If that doesn't get you thinking about long term investing, we don't know what will. It's also good to see the share price up 35% over the last quarter.
Since it's been a strong week for MongoDB shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for MongoDB
MongoDB 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
For the last half decade, MongoDB can boast revenue growth at a rate of 37% per year. Even measured against other revenue-focussed companies, that's a good result. Fortunately, the market has not missed this, and has pushed the share price up by 42% per year in that time. It's never too late to start following a top notch stock like MongoDB, since some long term winners 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 how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
MongoDB is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth. If you are thinking of buying or selling MongoDB stock, you should check out this free report showing analyst consensus estimates for future profits.
A Different Perspective
It's good to see that MongoDB has rewarded shareholders with a total shareholder return of 19% in the last twelve months. However, the TSR over five years, coming in at 42% per year, is even more impressive. Potential buyers might understandably feel they've missed the opportunity, but it's always possible business is still firing on all cylinders. It's always interesting to track share price performance over the longer term. But to understand MongoDB better, we need to consider many other factors. Even so, be aware that MongoDB is showing 3 warning signs in our investment analysis , you should know about...
Of course MongoDB 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 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.
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