Mirum Pharmaceuticals (NASDAQ:MIRM) delivers shareholders solid 23% CAGR over 5 years, surging 11% in the last week alone

When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But on a lighter note, a good company can see its share price rise well over 100%. For example, the Mirum Pharmaceuticals, Inc. (NASDAQ:MIRM) share price has soared 185% in the last half decade. Most would be very happy with that. It's also good to see the share price up 53% over the last quarter.

Since it's been a strong week for Mirum Pharmaceuticals shareholders, let's have a look at trend of the longer term fundamentals.

See our latest analysis for Mirum Pharmaceuticals

Given that Mirum 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. Shareholders of unprofitable companies usually desire strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Mirum Pharmaceuticals

A Different Perspective

It's good to see that Mirum Pharmaceuticals has rewarded shareholders with a total shareholder return of 45% in the last twelve months. That's better than the annualised return of 23% over half a decade, implying that the company is doing better recently. 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 Mirum Pharmaceuticals better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Mirum Pharmaceuticals you should be aware of.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: most of them are flying under the radar).

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com