MeridianLink (NYSE:MLNK) investors are sitting on a loss of 24% if they invested a year ago

Simply Wall St
·2 min read

While not a mind-blowing move, it is good to see that the MeridianLink, Inc. (NYSE:MLNK) share price has gained 11% in the last three months. But that is minimal compensation for the share price under-performance over the last year. In fact the stock is down 24% in the last year, well below the market return.

Since shareholders are down over the longer term, lets look at the underlying fundamentals over the that time and see if they've been consistent with returns.

View our latest analysis for MeridianLink

Given that MeridianLink 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 expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last year MeridianLink saw its revenue grow by 14%. That's definitely a respectable growth rate. Unfortunately that wasn't good enough to stop the share price dropping 24%. This implies the market was expecting better growth. But if revenue keeps growing, then at a certain point the share price would likely follow.

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

If you are thinking of buying or selling MeridianLink stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We doubt MeridianLink shareholders are happy with the loss of 24% over twelve months. That falls short of the market, which lost 7.6%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. It's great to see a nice little 11% rebound in the last three months. This could just be a bounce because the selling was too aggressive, but fingers crossed it's the start of a new trend. Before spending more time on MeridianLink it might be wise to click here to see if insiders have been buying or selling shares.

But note: MeridianLink may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

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