Shareholders in MediWound (NASDAQ:MDWD) have lost 61%, as stock drops 11% this past week

MediWound Ltd. -1.32%

MediWound Ltd.

MDWD

13.46

-1.32%

It is a pleasure to report that the MediWound Ltd. (NASDAQ:MDWD) is up 40% in the last quarter. Meanwhile over the last three years the stock has dropped hard. Indeed, the share price is down a tragic 61% in the last three years. So it is really good to see an improvement. While many would remain nervous, there could be further gains if the business can put its best foot forward.

Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.

See our latest analysis for MediWound

Given that MediWound 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. 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.

Over the last three years, MediWound's revenue dropped 0.005% per year. That is not a good result. The share price decline of 17% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Of course, it's the future that will determine whether today's price is a good one. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
NasdaqGM:MDWD Earnings and Revenue Growth March 29th 2024

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

A Different Perspective

MediWound shareholders are up 7.5% for the year. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 10% per year, over five years. So this might be a sign the business has turned its fortunes around. Shareholders might want to examine this detailed historical graph of past 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 American exchanges.

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