While not a mind-blowing move, it is good to see that the Braemar Hotels & Resorts, Inc. (NYSE:BHR) share price has gained 14% in the last three months. But over the last half decade, the stock has not performed well. You would have done a lot better buying an index fund, since the stock has dropped 28% in that half decade.
Braemar Hotels & Resorts isn’t currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. When a company doesn’t make profits, we’d generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Over five years, Braemar Hotels & Resorts grew its revenue at 10% per year. That’s a fairly respectable growth rate. We doubt many shareholders are ok with the fact the share price has fallen 6.3% each year for half a decade. Those who bought back then clearly believed in stronger growth – and maybe even profits. There is always a big risk of losing money yourself when you buy shares in a company that loses money.
Depicted in the graphic below, you’ll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
We’re pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. So we recommend checking out this free report showing consensus forecasts
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for Braemar Hotels & Resorts the TSR over the last 5 years was -12%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
It’s nice to see that Braemar Hotels & Resorts shareholders have received a total shareholder return of 24% over the last year. Of course, that includes the dividend. That certainly beats the loss of about 2.5% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. If you would like to research Braemar Hotels & Resorts in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
Of course Braemar Hotels & Resorts may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.