Canada markets closed
  • S&P/TSX

    20,628.92
    -129.42 (-0.62%)
     
  • S&P 500

    4,111.08
    -25.40 (-0.61%)
     
  • DOW

    33,891.02
    -34.99 (-0.10%)
     
  • CAD/USD

    0.7455
    +0.0018 (+0.24%)
     
  • CRUDE OIL

    74.94
    +0.83 (+1.12%)
     
  • BTC-CAD

    30,684.94
    -219.60 (-0.71%)
     
  • CMC Crypto 200

    524.93
    -0.21 (-0.04%)
     
  • GOLD FUTURES

    1,887.20
    +7.70 (+0.41%)
     
  • RUSSELL 2000

    1,957.72
    -27.82 (-1.40%)
     
  • 10-Yr Bond

    3.6340
    +0.1020 (+2.89%)
     
  • NASDAQ futures

    12,554.75
    +39.25 (+0.31%)
     
  • VOLATILITY

    19.43
    +1.10 (+6.00%)
     
  • FTSE

    7,836.71
    -65.09 (-0.82%)
     
  • NIKKEI 225

    27,754.36
    +60.71 (+0.22%)
     
  • CAD/EUR

    0.6938
    +0.0007 (+0.10%)
     

VOXX International (NASDAQ:VOXX) shareholders have earned a 30% CAGR over the last three years

It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For instance the VOXX International Corporation (NASDAQ:VOXX) share price is 120% higher than it was three years ago. Most would be happy with that. In more good news, the share price has risen 54% in thirty days.

So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.

View our latest analysis for VOXX International

Because VOXX International 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.

VOXX International's revenue trended up 19% each year over three years. That's pretty nice growth. Broadly speaking, this solid progress may well be reflected by the healthy share price gain of 30% per year over three years. It's hard to value pre-profit businesses, but it seems like the market has become a lot more optimistic about this one! Some investors like to buy in just after a company becomes profitable, since that can be a powerful inflexion point.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
earnings-and-revenue-growth

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 it makes a lot of sense to check out what analysts think VOXX International will earn in the future (free profit forecasts).

A Different Perspective

While it's certainly disappointing to see that VOXX International shares lost 15% throughout the year, that wasn't as bad as the market loss of 21%. Of course, the long term returns are far more important and the good news is that over five years, the stock has returned 10% for each year. In the best case scenario the last year is just a temporary blip on the journey to a brighter future. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that VOXX International is showing 1 warning sign in our investment analysis , you should know about...

VOXX International is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here