HIVE Blockchain Technologies delivers shareholders an incredible 72% CAGR over three years

HIVE Blockchain Technologies delivers shareholders an incredible 72% CAGR over three years

HIVE Blockchain Technologies Ltd. (CVE:HIVE) shareholders may understandably be very concerned that its share price has fallen 38% in the last quarter. But for the past three years, the stock has shone like a diamond. During that time, we’ve been excited to see the share price climb an impressive 413%. So you could argue that the recent reduction in the share price is imperceptible in light of its long-term performance. Only time will tell if there is still too much optimism reflected in the share price.

On the back of a solid 7-day performance, let’s check what role the company’s fundamentals have played in driving long-term shareholder returns.

Check out our latest analysis for HIVE Blockchain Technologies

HIVE Blockchain Technologies is not currently profitable, so most analysts will look to revenue growth to get an idea of ​​how fast the underlying business is growing. When a company is not making money, we generally expect good earnings growth. Some companies are willing to delay profitability in order to grow revenue faster, but in that case one expects good top line growth.

Over the past three years, HIVE Blockchain Technologies has increased its turnover by 74% annually. That’s well above most pre-profit companies. And it’s not just incomes that are falling. The share price rose 72% per year during that time. Despite the strong run, top performers like HIVE Blockchain Technologies have been known to keep winning for decades. So we’d recommend you take a closer look at this one, or even put it on your watchlist.

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

earnings-and-income growth
TSXV:HIVE earnings and revenue growth as of January 10, 2023

It is probably worth noting that the CEO is paid less than the median in companies of the same size. But while CEO compensation is always worth checking, the really important question is whether the company can grow earnings going forward. You can see what analysts are predicting for HIVE Blockchain Technologies in this interactive graph of future profit projections.

Another perspective

We regret to report that HIVE Blockchain Technologies shareholders are down 81% for the year. Unfortunately, that’s worse than the broader market decline of 2.5%. However, it could simply be that the share price has been affected by wider market turmoil. It might be worth keeping an eye on the fundamentals, just in case there’s a good opportunity. Unfortunately, last year’s results may indicate unresolved challenges, given that it was worse than the 13% annual loss over the past half decade. In general, long-term weakness in the stock price can be a bad sign, although contrarian investors may want to examine the stock in hopes of a turnaround. While it is well worth considering the various impacts market conditions can have on share prices, there are other factors that are even more important. Nevertheless, be aware that HIVE Blockchain Technologies appears 1 warning sign in our investment analysis should you know about…

But note: HIVE Blockchain Technologies may not be the best stock to buy. So take a look at this free list of interesting companies with past revenue growth (and further growth forecast).

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Please note that the market returns provided in this article reflect the market weighted average return for stocks currently traded on CA exchanges.

Valuation is complex, but we help make it simple.

Find out about HIVE Blockchain Technologies is potentially over- or under-rated by checking out our extensive analysis, which includes fair value estimates, risks and warnings, dividends, insider trading and financial health.

See the free analysis

This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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