If You Had Bought YRC Worldwide (NASDAQ:YRCW) Stock A Year Ago, You Could Pocket A 100% Gain Today

YRC Worldwide Inc. (NASDAQ:YRCW) shareholders might be concerned after seeing the share price drop 26% in the last month. But looking back over the last year, the returns have actually been rather pleasing! Looking at the full year, the company has easily bested an index fund by gaining 100%.

Check out our latest analysis for YRC Worldwide

Because YRC Worldwide 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. 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.

In the last year YRC Worldwide saw its revenue shrink by 9.1%. Despite the lack of revenue growth, the stock has returned a solid 100% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

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 YRC Worldwide's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that YRC Worldwide shareholders have received a total shareholder return of 100% over one year. Notably the five-year annualised TSR loss of 11% per year compares very unfavourably with the recent share price performance. We generally put more weight on the long term performance over the short term, but the recent improvement could hint at a (positive) inflection point within the business. It's always interesting to track share price performance over the longer term. But to understand YRC Worldwide better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for YRC Worldwide you should be aware of.

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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