U.S. Markets close in 5 hrs 26 mins
  • S&P 500

    3,612.84
    -25.51 (-0.70%)
     
  • Dow 30

    29,575.63
    -334.74 (-1.12%)
     
  • Nasdaq

    12,142.27
    -63.58 (-0.52%)
     
  • Russell 2000

    1,834.20
    -21.07 (-1.14%)
     
  • Crude Oil

    45.25
    -0.28 (-0.61%)
     
  • Gold

    1,777.40
    -10.70 (-0.60%)
     
  • Silver

    22.45
    -0.19 (-0.83%)
     
  • EUR/USD

    1.1993
    +0.0023 (+0.1919%)
     
  • 10-Yr Bond

    0.8490
    +0.0070 (+0.83%)
     
  • Vix

    21.88
    +1.04 (+4.99%)
     
  • GBP/USD

    1.3349
    +0.0034 (+0.2590%)
     
  • USD/JPY

    104.2000
    +0.1150 (+0.1105%)
     
  • BTC-USD

    19,619.81
    +285.98 (+1.48%)
     
  • CMC Crypto 200

    383.77
    +19.17 (+5.26%)
     
  • FTSE 100

    6,342.39
    -25.19 (-0.40%)
     
  • Nikkei 225

    26,433.62
    -211.09 (-0.79%)
     

Hill International (NYSE:HIL) Share Prices Have Dropped 68% In The Last Three Years

Simply Wall St
·3 min read

It's nice to see the Hill International, Inc. (NYSE:HIL) share price up 25% in a week. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 68%. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

See our latest analysis for Hill International

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

During five years of share price growth, Hill International moved from a loss to profitability. That would generally be considered a positive, so we are surprised to see the share price is down. So it's worth looking at other metrics to try to understand the share price move.

We think that the revenue decline over three years, at a rate of 19% per year, probably had some shareholders looking to sell. And that's not surprising, since it seems unlikely that EPS growth can continue for long in the absence of revenue growth.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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

Take a more thorough look at Hill International's financial health with this free report on its balance sheet.

A Different Perspective

Hill International shareholders are down 43% for the year, but the market itself is up 21%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 8% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Hill International (at least 1 which can't be ignored) , and understanding them should be part of your investment process.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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@simplywallst.com.