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Introducing Seafarms Group (ASX:SFG), A Stock That Climbed 46% In The Last Three Years

Simply Wall St
·2 min read

Seafarms Group Limited (ASX:SFG) shareholders might be concerned after seeing the share price drop 23% in the last quarter. But over three years, the returns would have left most investors smiling In the last three years the share price is up, 46%: better than the market.

See our latest analysis for Seafarms Group

Because Seafarms 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Seafarms Group actually saw its revenue drop by 3.9% per year over three years. The revenue growth might be lacking but the share price has gained 13% each year in that time. If the company is cutting costs profitability could be on the horizon, but the revenue decline is a prima facie concern.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

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

If you are thinking of buying or selling Seafarms Group stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

We're pleased to report that Seafarms Group shareholders have received a total shareholder return of 28% over one year. That gain is better than the annual TSR over five years, which is 7%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. 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. Even so, be aware that Seafarms Group is showing 4 warning signs in our investment analysis , and 2 of those don't sit too well with us...

We will like Seafarms Group better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AU 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.