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It hasn't been the best quarter for Five Point Holdings, LLC (NYSE:FPH) shareholders, since the share price has fallen 12% in that time. But that doesn't change the reality that over twelve months the stock has done really well. In that time we've seen the stock easily surpass the market return, with a gain of 63%.
Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.
Five Point 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.
Five Point Holdings actually shrunk its revenue over the last year, with a reduction of 18%. Despite the lack of revenue growth, the stock has returned a solid 63% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
This free interactive report on Five Point Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
We're pleased to report that Five Point Holdings rewarded shareholders with a total shareholder return of 63% over the last year. What is absolutely clear is that is far preferable to the dismal 0.7% average annual loss suffered over the last three years. It could well be that the business has turned around -- or else regained the confidence of investors. You could get a better understanding of Five Point Holdings' growth by checking out this more detailed historical graph of earnings, revenue and cash flow.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.
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.
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