Update: Stratus Properties (NASDAQ:STRS) Stock Gained 62% In The Last Year

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Stratus Properties Inc. (NASDAQ:STRS) shareholders have seen the share price descend 24% over the month. While that might be a setback, it doesn't negate the nice returns received over the last twelve months. After all, the share price is up a market-beating 62% in that time.

Check out our latest analysis for Stratus Properties

Given that Stratus Properties 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

Stratus Properties grew its revenue by 23% last year. That's a fairly respectable growth rate. Buyers pushed the share price 62% in response, which isn't unreasonable. If the company can maintain the revenue growth, the share price could go higher still. But it's crucial to check profitability and cash flow before forming a view on the future.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Stratus Properties' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Stratus Properties shareholders have received a total shareholder return of 62% over the last year. That's better than the annualised return of 3% over half a decade, implying that the company is doing better recently. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Stratus Properties better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Stratus Properties you should be aware of, and 2 of them don't sit too well with us.

We will like Stratus Properties better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider 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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