Unfortunately, investing is risky - companies can and do go bankrupt. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Oceaneering International, Inc. (NYSE:OII) share price has soared 122% in the last year. Most would be very happy with that, especially in just one year! Also pleasing for shareholders was the 29% gain in the last three months. Zooming out, the stock is actually down 46% in the last three years.
Given that Oceaneering International didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Oceaneering International actually shrunk its revenue over the last year, with a reduction of 11%. We're a little surprised to see the share price pop 122% in the last year. This is a good example of how buyers can push up prices even before the fundamental metrics show much growth. Of course, it could be that the market expected this revenue drop.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Take a more thorough look at Oceaneering International's financial health with this free report on its balance sheet.
A Different Perspective
We're pleased to report that Oceaneering International shareholders have received a total shareholder return of 122% over one year. There's no doubt those recent returns are much better than the TSR loss of 10% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Oceaneering International better, we need to consider many other factors. Even so, be aware that Oceaneering International is showing 3 warning signs in our investment analysis , you should know about...
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
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.
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