It hasn't been the best quarter for Brookdale Senior Living Inc. (NYSE:BKD) shareholders, since the share price has fallen 16% in that time. But at least the stock is up over the last year. However, its return of 36% does fall short of the market return of, 40%.
Since the long term performance has been good but there's been a recent pullback of 9.1%, let's check if the fundamentals match the share price.
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. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
Brookdale Senior Living grew its revenue by 4.8% last year. That's not a very high growth rate considering it doesn't make profits. Over that time the share price gained a very modest 36%. A closer look at the bottom line might reveal an opportunity.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
Take a more thorough look at Brookdale Senior Living's financial health with this free report on its balance sheet.
A Different Perspective
Brookdale Senior Living shareholders are up 36% for the year. Unfortunately this falls short of the market return. On the bright side, that's still a gain, and it is certainly better than the yearly loss of about 3% endured over half a decade. So this might be a sign the business has turned its fortunes around. 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. Even so, be aware that Brookdale Senior Living is showing 2 warning signs in our investment analysis , 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 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.
