Australia markets closed
  • ALL ORDS

    7,266.30
    +151.80 (+2.13%)
     
  • ASX 200

    6,988.10
    +149.80 (+2.19%)
     
  • AUD/USD

    0.6998
    -0.0035 (-0.50%)
     
  • OIL

    87.29
    +0.68 (+0.79%)
     
  • GOLD

    1,790.10
    -3.00 (-0.17%)
     
  • BTC-AUD

    53,985.86
    +233.11 (+0.43%)
     
  • CMC Crypto 200

    863.83
    +21.37 (+2.54%)
     
  • AUD/EUR

    0.6273
    -0.0035 (-0.56%)
     
  • AUD/NZD

    1.0675
    -0.0006 (-0.06%)
     
  • NZX 50

    11,852.15
    -198.17 (-1.64%)
     
  • NASDAQ

    14,454.61
    +451.50 (+3.22%)
     
  • FTSE

    7,466.07
    -88.24 (-1.17%)
     
  • Dow Jones

    34,725.47
    +564.69 (+1.65%)
     
  • DAX

    15,318.95
    -205.32 (-1.32%)
     
  • Hang Seng

    23,550.08
    -256.92 (-1.08%)
     
  • NIKKEI 225

    26,717.34
    +547.04 (+2.09%)
     

Those who invested in Stratus Properties (NASDAQ:STRS) a year ago are up 38%

  • Oops!
    Something went wrong.
    Please try again later.
·2-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • STRS

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the Stratus Properties Inc. (NASDAQ:STRS) share price is up 38% in the last 1 year, clearly besting the market return of around 21% (not including dividends). That's a solid performance by our standards! Having said that, the longer term returns aren't so impressive, with stock gaining just 29% in three years.

So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.

Check out our latest analysis for Stratus Properties

Given that Stratus Properties didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. When a company doesn't make profits, we'd generally expect to see good revenue growth. 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.

In the last year Stratus Properties saw its revenue grow by 271%. That's stonking growth even when compared to other loss-making stocks. While the share price gain of 38% over twelve months is pretty tasty, you might argue it doesn't fully reflect the strong revenue growth. If that's the case, now might be the time to take a close look at Stratus Properties. Human beings have trouble conceptualizing (and valuing) exponential growth. Is that what we're seeing here?

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
earnings-and-revenue-growth

If you are thinking of buying or selling Stratus Properties stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Stratus Properties shareholders have received a total shareholder return of 38% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 4% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 2 warning signs for Stratus Properties that you should be aware of before investing here.

But note: Stratus Properties 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 US exchanges.

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.

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

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting