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Seacor Holdings (NYSE:CKH) Shareholders Received A Total Return Of -0.2% In The Last Three Years

Simply Wall St

As an investor its worth striving to ensure your overall portfolio beats the market average. But the risk of stock picking is that you will likely buy under-performing companies. Unfortunately, that's been the case for longer term Seacor Holdings Inc. (NYSE:CKH) shareholders, since the share price is down 41% in the last three years, falling well short of the market return of around 45%. Shareholders have had an even rougher run lately, with the share price down 14% in the last 90 days.

Check out our latest analysis for Seacor Holdings

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Seacor Holdings became profitable within the last five years. We would usually expect to see the share price rise as a result. So given the share price is down it's worth checking some other metrics too.

We note that, in three years, revenue has actually grown at a 20% annual rate, so that doesn't seem to be a reason to sell shares. This analysis is just perfunctory, but it might be worth researching Seacor Holdings more closely, as sometimes stocks fall unfairly. This could present an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

NYSE:CKH Income Statement, December 10th 2019
NYSE:CKH Income Statement, December 10th 2019

We know that Seacor Holdings has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Seacor Holdings stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

We've already covered Seacor Holdings's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Seacor Holdings hasn't been paying dividends, but its TSR of -0.2% exceeds its share price return of -41%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.

A Different Perspective

Seacor Holdings provided a TSR of 7.9% over the last twelve months. Unfortunately this falls short of the market return. The silver lining is that the gain was actually better than the average annual return of 0.4% per year over five year. This could indicate that the company is winning over new investors, as it pursues its strategy. Before spending more time on Seacor Holdings it might be wise to click here to see if insiders have been buying or selling shares.

Of course Seacor Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.