The one-year returns have been notable for Ranger Energy Services (NYSE:RNGR) shareholders despite underlying losses increasing

By
Simply Wall St
Published
March 21, 2022
NYSE:RNGR
Source: Shutterstock

Passive investing in index funds can generate returns that roughly match the overall market. But if you pick the right individual stocks, you could make more than that. For example, the Ranger Energy Services, Inc. (NYSE:RNGR) share price is up 95% in the last 1 year, clearly besting the market return of around 4.5% (not including dividends). That's a solid performance by our standards! And shareholders have also done well over the long term, with an increase of 59% in the last three years.

Since it's been a strong week for Ranger Energy Services shareholders, let's have a look at trend of the longer term fundamentals.

View our latest analysis for Ranger Energy Services

Given that Ranger Energy Services 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. When a company doesn't make profits, we'd generally expect to see good 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.

In the last year Ranger Energy Services saw its revenue shrink by 6.6%. Despite the lack of revenue growth, the stock has returned a solid 95% the last twelve months. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

earnings-and-revenue-growth
NYSE:RNGR Earnings and Revenue Growth March 21st 2022

This free interactive report on Ranger Energy Services' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Pleasingly, Ranger Energy Services' total shareholder return last year was 95%. So this year's TSR was actually better than the three-year TSR (annualized) of 17%. The improving returns to shareholders suggests the stock is becoming more popular with time. It's always interesting to track share price performance over the longer term. But to understand Ranger Energy Services better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Ranger Energy Services (of which 1 is potentially serious!) you should know about.

If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).

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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