- United States
- Energy Services
- NYSE:RNGR
The one-year returns have been notable for Ranger Energy Services (NYSE:RNGR) shareholders despite underlying losses increasing
- Published
- March 21, 2022
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).
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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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.