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Investors Who Bought Millennium Minerals (ASX:MOY) Shares Three Years Ago Are Now Up 48%

Millennium Minerals Limited (ASX:MOY) shareholders might be concerned after seeing the share price drop 19% in the last month. But we wouldn’t complain about the gain over the last three years. In that time the stock gained 48%, besting the market return of 42%.

See our latest analysis for Millennium Minerals

Millennium Minerals isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

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Millennium Minerals actually saw its revenue drop by 8.6% per year over three years. Despite the lack of revenue growth, the stock has returned 14%, compound, over three years. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).

ASX:MOY Income Statement, March 14th 2019
ASX:MOY Income Statement, March 14th 2019

This free interactive report on Millennium Minerals’s balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Millennium Minerals shareholders are down 20% for the year, but the market itself is up 9.1%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Longer term investors wouldn’t be so upset, since they would have made 5.0%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. You could get a better understanding of Millennium Minerals’s growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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 AU exchanges.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.