Investors in Navigator Holdings (NYSE:NVGS) have made a favorable return of 31% over the past five years
It might be of some concern to shareholders to see the Navigator Holdings Ltd. (NYSE:NVGS) share price down 23% in the last month. On the bright side the share price is up over the last half decade. In that time, it is up 31%, which isn't bad, but is below the market return of 70%.
So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress.
See our latest analysis for Navigator Holdings
Navigator 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. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
For the last half decade, Navigator Holdings can boast revenue growth at a rate of 5.9% per year. That's not a very high growth rate considering the bottom line. Like its revenue, its share price gained over the period. The increase of 6% per year probably reflects the modest revenue growth. If profitability is likely in the near term, then this might be one to add to your watchlist.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Navigator Holdings' financial health with this free report on its balance sheet.
A Different Perspective
It's nice to see that Navigator Holdings shareholders have received a total shareholder return of 5.0% over the last year. However, that falls short of the 6% TSR per annum it has made for shareholders, each year, over five years. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 3 warning signs for Navigator Holdings you should be aware of, and 1 of them is a bit unpleasant.
Of course Navigator 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.
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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.
