Reflecting on Drive Shack's (NYSE:DS) Share Price Returns Over The Last Three Years
If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. But the last three years have been particularly tough on longer term Drive Shack Inc. (NYSE:DS) shareholders. Regrettably, they have had to cope with a 60% drop in the share price over that period. Even worse, it's down 16% in about a month, which isn't fun at all.
View our latest analysis for Drive Shack
Because Drive Shack 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. 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.
In the last three years Drive Shack saw its revenue shrink by 12% per year. That's not what investors generally want to see. With revenue in decline, and profit but a dream, we can understand why the share price has been declining at 17% per year. Of course, it's the future that will determine whether today's price is a good one. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
This free interactive report on Drive Shack's balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that Drive Shack has rewarded shareholders with a total shareholder return of 48% in the last twelve months. That certainly beats the loss of about 6% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. 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 Drive Shack is showing 4 warning signs in our investment analysis , and 1 of those shouldn't be ignored...
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.
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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