Stock Analysis

How Much Did Hill International's(NYSE:HIL) Shareholders Earn From Share Price Movements Over The Last Three Years?

NYSE:HIL
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It is doubtless a positive to see that the Hill International, Inc. (NYSE:HIL) share price has gained some 65% in the last three months. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 52% in the last three years. So it is really good to see an improvement. The rise has some hopeful, but turnarounds are often precarious.

Check out our latest analysis for Hill International

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

Hill International became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So given the share price is down it's worth checking some other metrics too.

We think that the revenue decline over three years, at a rate of 19% per year, probably had some shareholders looking to sell. After all, if revenue keeps shrinking, it may be difficult to find earnings growth in the future.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
NYSE:HIL Earnings and Revenue Growth February 22nd 2021

If you are thinking of buying or selling Hill International stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

While the broader market gained around 32% in the last year, Hill International shareholders lost 22%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. For example, we've discovered 3 warning signs for Hill International (1 is a bit unpleasant!) that you should be aware of before investing here.

For those who like to find winning investments this free list of growing 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 US exchanges.

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