What is a good revenue growth rate?

Higher is better, but sustained growth beats a one-year spike. Compare with the industry's growth and check that profits and cash flow are growing as well.

Is a higher or lower Rev. growth better?

When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read Rev. growth alongside other measures and compare similar companies.

Why is Rev. growth blank for some stocks?

It is usually blank when there's no earlier full year of revenue to compare with. Stock Meadow leaves the figure blank rather than guessing it.

Stock Meadow · Metric glossary · Growth

Revenue Growth: formula and how to read it

Revenue growth shows how fast a company's sales are expanding. It is the starting point for most growth analysis.

What is Revenue Growth?

How fast sales grew last year. Latest reported full-year revenue compared with the preceding full year.

Stock Meadow groups it under Growth, and shows it in tables as Rev. growth.

Formula and a worked example

Revenue growth = (latest full-year revenue − preceding full-year revenue) ÷ preceding full-year revenue

Revenue rising from $200 million to $230 million is growth of 15%. The numbers are made up for illustration.

How to read it

A higher figure means faster-growing sales. Sustained growth matters more than a single year.

When Stock Meadow ranks stocks, a higher figure scores better.

Common pitfalls

It compares full fiscal years, so it can lag a recent change in the business.
Acquisitions add revenue without organic growth.
Growth from a very small base is capped at ±1000% so extreme figures cannot dominate.

How Stock Meadow handles gaps. Usually blank when there's no earlier full year of revenue to compare with. Extreme values are capped at 1000%+.

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

Stock Meadow models that use it

In Weighted ranking, Z-score composite and Balanced (no weak link), you choose the metrics and weights yourself, so you can include it in a custom score.

No fixed-recipe model scores it.

Read about every scoring model on the scoring models page.

Frequently asked questions

What is a good revenue growth rate?: Higher is better, but sustained growth beats a one-year spike. Compare with the industry's growth and check that profits and cash flow are growing as well.
Is a higher or lower Rev. growth better?: When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read Rev. growth alongside other measures and compare similar companies.
Why is Rev. growth blank for some stocks?: It is usually blank when there's no earlier full year of revenue to compare with. Stock Meadow leaves the figure blank rather than guessing it.

Use Rev. growth in Stock Meadow

Filter on Revenue growth (annual), score it in your own screen, and see how every stock compares. Free during the preview.

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