Did Business Growth Power Grindrod Shipping Holdings' (NASDAQ:GRIN) Share Price Gain of 233%?

By
Simply Wall St
Published
April 30, 2021
NasdaqGS:GRIN

Unfortunately, investing is risky - companies can and do go bankrupt. On the other hand, if you find a high quality business to buy (at the right price) you can more than double your money! For example, the Grindrod Shipping Holdings Ltd. (NASDAQ:GRIN) share price had more than doubled in just one year - up 233%. On top of that, the share price is up 59% in about a quarter. Grindrod Shipping Holdings hasn't been listed for long, so it's still not clear if it is a long term winner.

View our latest analysis for Grindrod Shipping Holdings

Grindrod Shipping Holdings isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Grindrod Shipping Holdings actually shrunk its revenue over the last year, with a reduction of 16%. We're a little surprised to see the share price pop 233% in the last year. It just goes to show the market doesn't always pay attention to the reported numbers. Of course, it could be that the market expected this revenue drop.

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

earnings-and-revenue-growth
NasdaqGS:GRIN Earnings and Revenue Growth April 30th 2021

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

A Different Perspective

Grindrod Shipping Holdings shareholders should be happy with the total gain of 233% over the last twelve months. And the share price momentum remains respectable, with a gain of 59% in the last three months. Demand for the stock from multiple parties is pushing the price higher; it could be that word is getting out about its virtues as a business. 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. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Grindrod Shipping Holdings you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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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