Even after rising 20% this past week, SEACOR Marine Holdings (NYSE:SMHI) shareholders are still down 70% over the past three years

Simply Wall St
·2 min read

SEACOR Marine Holdings Inc. (NYSE:SMHI) shareholders should be happy to see the share price up 25% in the last month. But only the myopic could ignore the astounding decline over three years. To wit, the share price sky-dived 70% in that time. So we're relieved for long term holders to see a bit of uplift. Of course the real question is whether the business can sustain a turnaround.

Although the past week has been more reassuring for shareholders, they're still in the red over the last three years, so let's see if the underlying business has been responsible for the decline.

See our latest analysis for SEACOR Marine Holdings

SEACOR Marine Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good 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.

In the last three years SEACOR Marine Holdings saw its revenue shrink by 13% per year. That is not a good result. The share price fall of 19% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue. This business clearly needs to grow revenues if it is to perform as investors hope. Don't let a share price decline ruin your calm. You make better decisions when you're calm.

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

If you are thinking of buying or selling SEACOR Marine Holdings stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

Pleasingly, SEACOR Marine Holdings' total shareholder return last year was 29%. That certainly beats the loss of about 19% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. It's always interesting to track share price performance over the longer term. But to understand SEACOR Marine Holdings better, we need to consider many other factors. To that end, you should learn about the 4 warning signs we've spotted with SEACOR Marine Holdings (including 1 which makes us a bit uncomfortable) .

We will like SEACOR Marine Holdings 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.

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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.