Reflecting on Five Point Holdings' (NYSE:FPH) Share Price Returns Over The Last Three Years
The truth is that if you invest for long enough, you're going to end up with some losing stocks. Long term Five Point Holdings, LLC (NYSE:FPH) shareholders know that all too well, since the share price is down considerably over three years. Regrettably, they have had to cope with a 67% drop in the share price over that period. And over the last year the share price fell 38%, so we doubt many shareholders are delighted. Furthermore, it's down 16% in about a quarter. That's not much fun for holders.
See our latest analysis for Five Point Holdings
Five Point 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over three years, Five Point Holdings grew revenue at 14% per year. That's a pretty good rate of top-line growth. So some shareholders would be frustrated with the compound loss of 19% per year. To be frank we're surprised to see revenue growth and share price growth diverge so strongly. So this is one stock that might be worth investigating further, or even adding to your watchlist.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Five Point Holdings' financial health with this free report on its balance sheet.
A Different Perspective
Over the last year, Five Point Holdings shareholders took a loss of 38%. In contrast the market gained about 12%. Of course the long term matters more than the short term, and even great stocks will sometimes have a poor year. The three-year loss of 19% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. We would be wary of buying into a company with unsolved problems, although some investors will buy into struggling stocks if they believe the price is sufficiently attractive. It's always interesting to track share price performance over the longer term. But to understand Five Point Holdings better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Five Point Holdings you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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