While Stratus Properties Inc. (NASDAQ:STRS) shareholders are probably generally happy, the stock hasn’t had particularly good run recently, with the share price falling 15% in the last quarter. On the bright side the share price is up over the last half decade. In that time, it is up 73%, which isn’t bad, but is below the market return of 124%.
See our latest analysis for Stratus Properties
Because Stratus Properties 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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last 5 years Stratus Properties saw its revenue shrink by 14% per year. The stock is only up 12% for each year during the period. That’s pretty decent given the top line decline, and lack of profits. We’d keep an eye on changes in the trend – there may be an opportunity if the company returns to growth.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
NasdaqGS:STRS Earnings and Revenue Growth July 26th 2021
If you are thinking of buying or selling Stratus Properties stock, you should check out this FREE detailed report on its balance sheet.
What about the Total Shareholder Return (TSR)?
We’ve already covered Stratus Properties’ share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Stratus Properties hasn’t been paying dividends, but its TSR of 80% exceeds its share price return of 73%, implying it has either spun-off a business, or raised capital at a discount; thereby providing additional value to shareholders.
A Different Perspective
It’s good to see that Stratus Properties has rewarded shareholders with a total shareholder return of 67% in the last twelve months. That’s better than the annualised return of 12% over half a decade, implying that the company is doing better recently. 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. Take risks, for example – Stratus Properties has 2 warning signs we think you should be aware of.
We will like Stratus Properties 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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