Would Shareholders Who Purchased KLX Energy Services Holdings' (NASDAQ:KLXE) Stock Year Be Happy With The Share price Today?

By
Simply Wall St
Published
June 07, 2021
NasdaqGS:KLXE
Source: Shutterstock

KLX Energy Services Holdings, Inc. (NASDAQ:KLXE) shareholders should be happy to see the share price up 15% in the last month. But that doesn't change the reality of under-performance over the last twelve months. The cold reality is that the stock has dropped 19% in one year, under-performing the market.

View our latest analysis for KLX Energy Services Holdings

KLX Energy Services Holdings wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. 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.

KLX Energy Services Holdings' revenue didn't grow at all in the last year. In fact, it fell 49%. That looks pretty grim, at a glance. Shareholders have seen the share price drop 19% in that time. That seems pretty reasonable given the lack of both profits and revenue growth. We think most holders must believe revenue growth will improve, or else costs will decline.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

earnings-and-revenue-growth
NasdaqGS:KLXE Earnings and Revenue Growth June 8th 2021

Take a more thorough look at KLX Energy Services Holdings' financial health with this free report on its balance sheet.

A Different Perspective

While KLX Energy Services Holdings shareholders are down 19% for the year, the market itself is up 38%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 2.8% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. 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 4 warning signs for KLX Energy Services Holdings you should be aware of, and 2 of them are significant.

We will like KLX Energy Services Holdings better if we see some big insider buys. While we wait, check out this free list of growing companies 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 US exchanges.

If you’re looking to trade KLX Energy Services Holdings, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.