- Oops!Something went wrong.Please try again later.
While Full House Resorts, Inc. (NASDAQ:FLL) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 19% in the last quarter. But that isn't a problem when you consider how the share price has soared over the last year. In fact, it is up 380% in that time. So the recent fall isn't enough to negate the good performance. Only time will tell if there is still too much optimism currently reflected in the share price.
While Full House Resorts made a small profit, in the last year, we think that the market is probably more focussed on the top line growth at the moment. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.
In the last year Full House Resorts saw its revenue shrink by 12%. So it's very confusing to see that the share price gained a whopping 380%. There can be no doubt this kind of decoupling of revenue growth and share price growth is unusual to see in loss making companies. To us, a gain like this looks like speculation, but there might be historical trends to back it up.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
We know that Full House Resorts has improved its bottom line lately, but what does the future have in store? You can see what analysts are predicting for Full House Resorts in this interactive graph of future profit estimates.
A Different Perspective
It's nice to see that Full House Resorts shareholders have received a total shareholder return of 380% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 33% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Case in point: We've spotted 4 warning signs for Full House Resorts you should be aware of, and 1 of them is a bit concerning.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. 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.