Recent 8.6% pullback isn't enough to hurt long-term Sea1 Offshore (OB:SEA1) shareholders, they're still up 518% over 3 years

It might be of some concern to shareholders to see the Sea1 Offshore Inc. (OB:SEA1) share price down 18% in the last month. But over three years the performance has been really wonderful. The longer term view reveals that the share price is up 518% in that period. So the recent fall doesn't do much to dampen our respect for the business. The only way to form a view of whether the current price is justified is to consider the merits of the business itself. We love happy stories like this one. The company should be really proud of that performance!

While this past week has detracted from the company's three-year return, let's look at the recent trends of the underlying business and see if the gains have been in alignment.

View our latest analysis for Sea1 Offshore

In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

During three years of share price growth, Sea1 Offshore moved from a loss to profitability. Given the importance of this milestone, it's not overly surprising that the share price has increased strongly.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

We know that Sea1 Offshore has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Sea1 Offshore's balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

It's nice to see that Sea1 Offshore shareholders have received a total shareholder return of 40% over the last year. There's no doubt those recent returns are much better than the TSR loss of 12% 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 Sea1 Offshore better, we need to consider many other factors. To that end, you should learn about the 3 warning signs we've spotted with Sea1 Offshore (including 1 which is concerning) .

For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.

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