The Aspen Group, Inc. (NASDAQ:ASPU) share price is down a rather concerning 37% in the last month. But in stark contrast, the returns over the last half decade have impressed. We think most investors would be happy with the 158% return, over that period. Generally speaking the long term returns will give you a better idea of business quality than short periods can. Of course, that doesn’t necessarily mean it’s cheap now.
See our latest analysis for Aspen Group
Given that Aspen Group 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years Aspen Group saw its revenue grow at 42% per year. That’s well above most pre-profit companies. Meanwhile, its share price performance certainly reflects the strong growth, given the share price grew at 21% per year, compound, during the period. So it seems likely that buyers have paid attention to the strong revenue growth. To our minds that makes Aspen Group worth investigating – it may have its best days ahead.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
NasdaqGM:ASPU Income Statement, March 12th 2020
If you are thinking of buying or selling Aspen Group stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
It’s nice to see that Aspen Group shareholders have received a total shareholder return of 20% over the last year. However, the TSR over five years, coming in at 21% per year, is even more impressive. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We’ve spotted 3 warning signs for Aspen Group you should be aware of, and 1 of them is a bit concerning.
We will like Aspen Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
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.
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