Membersion Collective Group（纽约证券交易所代码：MCG）的股东上周上涨了5.9％，但与去年相比仍处于亏损状态

Membership Collective Group Inc. (NYSE:MCG) shareholders will doubtless be very grateful to see the share price up 40% in the last quarter. But that doesn't change the reality of under-performance over the last twelve months. After all, the share price is down 17% in the last year, significantly under-performing the market.

While the stock has risen 5.9% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.

See our latest analysis for Membership Collective Group

Membership Collective Group 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.

Membership Collective Group grew its revenue by 98% over the last year. That's well above most other pre-profit companies. Given the revenue growth, the share price drop of 17% seems quite harsh. Our sympathies to shareholders who are now underwater. Prima facie, revenue growth like that should be a good thing, so it's worth checking whether losses have stabilized. Our monkey brains haven't evolved to think exponentially, so humans do tend to underestimate companies that have exponential growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. So it makes a lot of sense to check out what analysts think Membership Collective Group will earn in the future (free profit forecasts).

A Different Perspective

Membership Collective Group shareholders are down 17% for the year, even worse than the market loss of 8.3%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's great to see a nice little 40% 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. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 2 warning signs for Membership Collective Group you should know about.

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

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

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.