Yahoo Finance Brookdale Senior Living's (NYSE:BKD) investors will be pleased with their impressive 150% return over the last year
Unless you borrow money to invest, the potential losses are limited. But when you pick a company that is really flourishing, you can make more than 100%. For example, the Brookdale Senior Living Inc. (NYSE:BKD) share price has soared 150% in the last 1 year. Most would be very happy with that, especially in just one year! It's also good to see the share price up 16% over the last quarter. But this could be related to the strong market, which is up 9.3% in the last three months. Having said that, the longer term returns aren't so impressive, with stock gaining just 11% in three years.
So let's assess the underlying fundamentals over the last 1 year and see if they've moved in lock-step with shareholder returns.
View our latest analysis for Brookdale Senior Living
Given that Brookdale Senior Living 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 fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last twelve months, Brookdale Senior Living's revenue grew by 10%. That's not a very high growth rate considering it doesn't make profits. So we wouldn't have expected the share price to rise by 150%. We're happy that investors have made money, though we wonder if the increase will be sustained. We're not so sure that revenue growth is driving the market optimism about the stock.
The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Different Perspective
It's nice to see that Brookdale Senior Living shareholders have received a total shareholder return of 150% over the last year. Notably the five-year annualised TSR loss of 0.6% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Brookdale Senior Living better, we need to consider many other factors. For example, we've discovered 1 warning sign for Brookdale Senior Living that you should be aware of before investing here.
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 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.
