Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Helix Energy Solutions Group, Inc. (NYSE:HLX) share price had more than doubled in just one year - up 101%. It's also good to see the share price up 54% over the last quarter. Zooming out, the stock is actually down 26% in the last three years.
Since the long term performance has been good but there's been a recent pullback of 5.1%, let's check if the fundamentals match the share price.
Check out our latest analysis for Helix Energy Solutions Group
Helix Energy Solutions Group 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
Helix Energy Solutions Group grew its revenue by 13% last year. That's not a very high growth rate considering it doesn't make profits. In contrast, the share price took off during the year, gaining 101%. We're happy that investors have made money, though we wonder if the increase will be sustained. It's quite likely that the market is considering other factors, not just revenue growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
We're pleased to report that Helix Energy Solutions Group shareholders have received a total shareholder return of 101% over one year. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Helix Energy Solutions Group better, we need to consider many other factors. For instance, we've identified 1 warning sign for Helix Energy Solutions Group that you should be aware of.
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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.