Investors in ProPetro Holding (NYSE:PUMP) have unfortunately lost 20% over the last five years

Simply Wall St.
25 Dec 2024

While it may not be enough for some shareholders, we think it is good to see the ProPetro Holding Corp. (NYSE:PUMP) share price up 14% in a single quarter. But if you look at the last five years the returns have not been good. After all, the share price is down 20% in that time, significantly under-performing the market.

It's worthwhile assessing if the company's economics have been moving in lockstep with these underwhelming shareholder returns, or if there is some disparity between the two. So let's do just that.

Check out our latest analysis for ProPetro Holding

Because ProPetro Holding 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over five years, ProPetro Holding grew its revenue at 0.7% per year. That's not a very high growth rate considering it doesn't make profits. Given the weak growth, the share price fall of 4% isn't particularly surprising. Investors should consider how bad the losses are, and whether the company can make it to profitability with ease. Shareholders will want the company to approach profitability if it can't grow revenue any faster.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

NYSE:PUMP Earnings and Revenue Growth December 25th 2024

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

A Different Perspective

ProPetro Holding shareholders gained a total return of 4.3% during the year. But that was short of the market average. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 4% endured over half a decade. It could well be that the business is stabilizing. Before spending more time on ProPetro Holding it might be wise to click here to see if insiders have been buying or selling shares.

But note: ProPetro Holding may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on American exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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