Pursuit Attractions and Hospitality (NYSE:PRSU) pulls back 7.7% this week, but still delivers shareholders notable 8.1% CAGR over 5 years

It hasn't been the best quarter for Pursuit Attractions and Hospitality, Inc. (NYSE:PRSU) shareholders, since the share price has fallen 29% in that time. On the bright side the share price is up over the last half decade. In that time, it is up 48%, which isn't bad, but is below the market return of 107%.

While the stock has fallen 7.7% this week, it's worth focusing on the longer term and seeing if the stocks historical returns have been driven by the underlying fundamentals.

We've discovered 1 warning sign about Pursuit Attractions and Hospitality. View them for free.

Because Pursuit Attractions and Hospitality made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Over the last half decade Pursuit Attractions and Hospitality's revenue has actually been trending down at about 11% per year. The falling revenue is arguably somewhat reflected in the lacklustre return of 8% per year over that time. That's pretty decent given the top line decline, and lack of profits. We'd keep an eye on changes in the trend - there may be an opportunity if the company returns to growth.

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

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

A Different Perspective

While the broader market gained around 13% in the last year, Pursuit Attractions and Hospitality shareholders lost 20%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 8% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. 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. Case in point: We've spotted 1 warning sign for Pursuit Attractions and Hospitality you should be aware of.

We will like Pursuit Attractions and Hospitality better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying.

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