This month, we saw the Angi Inc. (NASDAQ:ANGI) up an impressive 40%.    But that doesn't change the fact that the returns over the last half decade have been stomach churning.  In fact, the share price has tumbled down a mountain to land 87% lower after that period.  It's true that the recent bounce could signal the company is turning over a new leaf, but we are not so sure.  The important question is if the business itself justifies a higher share price in the long term.       While a drop like that is definitely a body blow, money isn't as important as health and happiness.  

While the stock has risen 6.2% 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 Angi

Angi 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.  

Over five years, Angi grew its revenue at 10.0% per year.   That's a pretty good rate for a long time period.   So it is unexpected to see the stock down 13% per year in the last five years.  The market can be a harsh master when your company is losing money and revenue growth disappoints.      

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

NasdaqGS:ANGI Earnings and Revenue Growth November 29th 2023

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies.  It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years.   So it makes a lot of sense to check out what analysts think Angi will earn in the future (free profit forecasts).

A Different Perspective

Angi provided a TSR of 8.3% over the last twelve months.  But that was short of the market average.    But at least that's still a gain! Over five years the TSR has been a reduction of 13% per year, over five years.  So this might be a sign the business has turned its fortunes around.        You could get a better understanding of Angi's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.  

If you are like me, then you will 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 American 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.