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Introducing Overseas Shipholding Group (NYSE:OSG), The Stock That Slid 64% In The Last Three Years

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·3 min read
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  • OSG

While it may not be enough for some shareholders, we think it is good to see the Overseas Shipholding Group, Inc. (NYSE:OSG) share price up 12% in a single quarter. But that is small recompense for the exasperating returns over three years. Regrettably, the share price slid 64% in that period. So it's good to see it climbing back up. After all, could be that the fall was overdone.

See our latest analysis for Overseas Shipholding Group

Because Overseas Shipholding Group made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years, Overseas Shipholding Group saw its revenue grow by 1.4% per year, compound. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 29% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

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

NYSE:OSG Income Statement, January 29th 2020
NYSE:OSG Income Statement, January 29th 2020

It's good to see that there was some significant insider buying in the last three months. That's a positive. That said, we think earnings and revenue growth trends are even more important factors to consider. It might be well worthwhile taking a look at our free report on Overseas Shipholding Group's earnings, revenue and cash flow.

A Different Perspective

Over the last year, Overseas Shipholding Group shareholders took a loss of 2.1%. In contrast the market gained about 24%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. However, the loss over the last year isn't as bad as the 29% per annum loss investors have suffered over the last three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. It's always interesting to track share price performance over the longer term. But to understand Overseas Shipholding Group better, we need to consider many other factors. Take risks, for example - Overseas Shipholding Group has 2 warning signs we think you should be aware of.

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.

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.