While SeaSpine Holdings Corporation (NASDAQ:SPNE) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 27% in the last quarter. On the bright side the share price is up over the last half decade. In that time, it is up 62%, which isn't bad, but is below the market return of 123%.
Because SeaSpine Holdings 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years SeaSpine Holdings saw its revenue grow at 5.6% per year. Put simply, that growth rate fails to impress. Like its revenue, its share price gained over the period. The increase of 10% per year probably reflects the modest revenue growth. It seems likely that we'll have to zoom in on the data, including profits, to understand if there is an opportunity here.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
This free interactive report on SeaSpine Holdings' balance sheet strength is a great place to start, if you want to investigate the stock further.
A Different Perspective
It's good to see that SeaSpine Holdings has rewarded shareholders with a total shareholder return of 48% in the last twelve months. That gain is better than the annual TSR over five years, which is 10%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that SeaSpine Holdings is showing 3 warning signs in our investment analysis , you should know about...
Of course SeaSpine Holdings may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
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. 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.
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