Orion Group Holdings' (NYSE:ORN) investors will be pleased with their stellar 106% return over the last year
Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! Take, for example Orion Group Holdings, Inc. (NYSE:ORN). Its share price is already up an impressive 106% in the last twelve months. On top of that, the share price is up 34% in about a quarter. The longer term returns have not been as good, with the stock price only 1.9% higher than it was three years ago.
So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.
View our latest analysis for Orion Group Holdings
Orion Group Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. 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.
Orion Group Holdings actually shrunk its revenue over the last year, with a reduction of 1.1%. So we would not have expected the share price to rise 106%. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
Take a more thorough look at Orion Group Holdings' financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Orion Group Holdings shareholders have received a total shareholder return of 106% over the last year. That's better than the annualised return of 9% over half a decade, implying that the company is doing better recently. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand Orion Group Holdings better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Orion Group Holdings .
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 American exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
