Recent 14% pullback isn't enough to hurt long-term Nurminen Logistics Oyj (HEL:NLG1V) shareholders, they're still up 436% over 3 years

By
Simply Wall St
Published
January 20, 2022
HLSE:NLG1V
Source: Shutterstock

The Nurminen Logistics Oyj (HEL:NLG1V) share price has had a bad week, falling 14%. But that doesn't change the fact that the returns over the last three years have been spectacular. Indeed, the share price is up a whopping 436% in that time. Arguably, the recent fall is to be expected after such a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.

While the stock has fallen 14% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

See our latest analysis for Nurminen Logistics Oyj

Given that Nurminen Logistics Oyj 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last 3 years Nurminen Logistics Oyj saw its revenue grow at 5.9% per year. Considering the company is losing money, we think that rate of revenue growth is uninspiring. So we're surprised that the share price has soared by 75% each year over that time. We'll tip our hats to that, any day, but the top-line growth isn't particularly impressive when you compare it to other pre-profit companies. The company will need to continue to execute on its business strategy to justify this rise.

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

earnings-and-revenue-growth
HLSE:NLG1V Earnings and Revenue Growth January 20th 2022

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

A Different Perspective

We're pleased to report that Nurminen Logistics Oyj shareholders have received a total shareholder return of 215% over one year. That gain is better than the annual TSR over five years, which is 30%. Therefore it seems like sentiment around the company has been positive lately. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. Even so, be aware that Nurminen Logistics Oyj is showing 3 warning signs in our investment analysis , you should know about...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

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

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