- Energy Services
Akastor (OB:AKAST) shareholders are still up 186% over 3 years despite pulling back 13% in the past week
It might be of some concern to shareholders to see the Akastor ASA (OB:AKAST) share price down 14% in the last month. In contrast, the return over three years has been impressive. The share price marched upwards over that time, and is now 186% higher than it was. To some, the recent share price pullback wouldn't be surprising after such a good run. The fundamental business performance will ultimately dictate whether the top is in, or if this is a stellar buying opportunity.
Since the long term performance has been good but there's been a recent pullback of 13%, let's check if the fundamentals match the share price.
See our latest analysis for Akastor
Given that Akastor 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Akastor actually saw its revenue drop by 66% per year over three years. So we wouldn't have expected the share price to gain 42% per year, but it has. It's a good reminder that expectations about the future, not the past history, always impact share prices.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
Take a more thorough look at Akastor's financial health with this free report on its balance sheet.
A Different Perspective
It's good to see that Akastor has rewarded shareholders with a total shareholder return of 65% in the last twelve months. Notably the five-year annualised TSR loss of 5% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. Before spending more time on Akastor it might be wise to click here to see if insiders have been buying or selling shares.
But note: Akastor may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Norwegian exchanges.
Valuation is complex, but we're helping make it simple.
Find out whether Akastor is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.View the Free Analysis
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Akastor ASA operates as an oilfield services investment company.
Reasonable growth potential with adequate balance sheet.