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Imagine Owning Grindrod Shipping Holdings (NASDAQ:GRIN) While The Price Tanked 53%

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Simply Wall St
·3 min read
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Taking the occasional loss comes part and parcel with investing on the stock market. Anyone who held Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) over the last year knows what a loser feels like. To wit the share price is down 53% in that time. Grindrod Shipping Holdings may have better days ahead, of course; we've only looked at a one year period. The share price has dropped 64% in three months.

See our latest analysis for Grindrod Shipping Holdings

Grindrod Shipping 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Grindrod Shipping Holdings grew its revenue by 3.8% over the last year. While that may seem decent it isn't great considering the company is still making a loss. Without profits, and with revenue growth sluggish, you get a 53% loss for shareholders, over the year. Like many holders, we really want to see better revenue growth in companies that lose money. Of course, the market can be too impatient at times. Why not take a closer look at this one so you're ready to pounce if growth does accelerate.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

NasdaqGS:GRIN Income Statement April 15th 2020
NasdaqGS:GRIN Income Statement April 15th 2020

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

Grindrod Shipping Holdings shareholders are down 53% for the year, even worse than the market loss of 3.5%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. Notably, the loss over the last year isn't as bad as the 64% drop in the last three months. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For instance, we've identified 3 warning signs for Grindrod Shipping Holdings (1 is a bit concerning) that you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

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. Thank you for reading.