Yahoo Finance SEACOR Marine Holdings (NYSE:SMHI) hikes 21% this week, taking three-year gains to 148%
The worst result, after buying shares in a company (assuming no leverage), would be if you lose all the money you put in. But in contrast you can make much more than 100% if the company does well. For example, the SEACOR Marine Holdings Inc. (NYSE:SMHI) share price has soared 148% in the last three years. That sort of return is as solid as granite. And in the last week the share price has popped 21%.
Since it's been a strong week for SEACOR Marine Holdings shareholders, let's have a look at trend of the longer term fundamentals.
See our latest analysis for SEACOR Marine Holdings
SEACOR Marine Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
In the last 3 years SEACOR Marine Holdings saw its revenue grow at 17% per year. That's a very respectable growth rate. It's fair to say that the market has acknowledged the growth by pushing the share price up 35% per year. It's hard to value pre-profit businesses, but it seems like the market has become a lot more optimistic about this one! Some investors like to buy in just after a company becomes profitable, since that can be a powerful inflexion point.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at SEACOR Marine Holdings' financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that SEACOR Marine Holdings shareholders have received a total shareholder return of 6.1% over one year. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. 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. To that end, you should be aware of the 1 warning sign we've spotted with SEACOR Marine Holdings .
But note: SEACOR Marine Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
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.
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