Can You Imagine How Jubilant Venator Materials' (NYSE:VNTR) Shareholders Feel About Its 155% Share Price Gain?

When you buy shares in a company, there is always a risk that the price drops to zero. But if you pick the right business to buy shares in, you can make more than you can lose. For example, the Venator Materials PLC (NYSE:VNTR) share price has soared 155% return in just a single year. It's also good to see the share price up 59% over the last quarter. This could be related to the recent financial results, released recently - you can catch up on the most recent data by reading our company report. Zooming out, the stock is actually down 75% in the last three years.

See our latest analysis for Venator Materials

Given that Venator Materials 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. 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.

Venator Materials actually shrunk its revenue over the last year, with a reduction of 9.0%. We're a little surprised to see the share price pop 155% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. It's quite likely the revenue fall was already priced in, anyway.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

Take a more thorough look at Venator Materials' financial health with this free report on its balance sheet.

A Different Perspective

It's nice to see that Venator Materials shareholders have gained 155% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 20% average annual loss suffered over the last three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. It's always interesting to track share price performance over the longer term. But to understand Venator Materials better, we need to consider many other factors. For instance, we've identified 1 warning sign for Venator Materials that you should be aware of.

We will like Venator Materials 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.

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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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