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Does MiMedx Group Inc’s (NASDAQ:MDXG) Past Performance Indicate A Stronger Future?

Examining MiMedx Group Inc’s (NASDAQ:MDXG) past track record of performance is a useful exercise for investors. It allows us to reflect on whether the company has met or exceed expectations, which is a powerful signal for future performance. Below, I will assess MDXG’s latest performance announced on 30 September 2017 and weight these figures against its longer term trend and industry movements. See our latest analysis for MiMedx Group

Did MDXG beat its long-term earnings growth trend and its industry?

For the most up-to-date info, I use the ‘latest twelve-month’ data, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method enables me to examine different companies on a more comparable basis, using new information. MiMedx Group’s most recent earnings is $35.3M, which, relative to last year’s level, has increased by a significant 77.82%. Since these figures are fairly short-term thinking, I have determined an annualized five-year value for MiMedx Group’s earnings, which stands at $4.3M. This suggests that, generally, MiMedx Group has been able to increasingly raise its bottom line over the last couple of years as well.

NasdaqCM:MDXG Income Statement Dec 17th 17
NasdaqCM:MDXG Income Statement Dec 17th 17

How has it been able to do this? Let’s see if it is merely attributable to industry tailwinds, or if MiMedx Group has experienced some company-specific growth. Over the past few years, MiMedx Group grew its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Scanning growth from a sector-level, the US biotechnology industry has been growing its average earnings by double-digit 11.07% in the past year, and 20.18% over the previous few years. This means that whatever uplift the industry is deriving benefit from, MiMedx Group is able to leverage this to its advantage.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that have performed well in the past, such as MiMedx Group gives investors conviction. However, the next step would be to assess whether the future looks as optimistic. I suggest you continue to research MiMedx Group to get a more holistic view of the stock by looking at:

1. Future Outlook: What are well-informed industry analysts predicting for MDXG’s future growth? Take a look at our free research report of analyst consensus for MDXG’s outlook.

2. Financial Health: Is MDXG’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

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