It might be of some concern to shareholders to see the GDS Holdings Limited (NASDAQ:GDS) share price down 20% in the last month. But that doesn’t change the fact that the returns over the last three years have been spectacular. Indeed, the share price is up a whopping 492% in that time. Arguably, the recent fall is to be expected after such a strong rise. Only time will tell if there is still too much optimism currently reflected in the share price.
View our latest analysis for GDS Holdings
Given that GDS Holdings 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. 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 3 years GDS Holdings saw its revenue grow at 46% per year. That’s much better than most loss-making companies. In light of this attractive revenue growth, it seems somewhat appropriate that the share price has been rocketing, boasting a gain of 81% per year, over the same period. Despite the strong run, top performers like GDS Holdings have been known to go on winning for decades. So we’d recommend you take a closer look at this one, or even put it on your watchlist.
The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).
GDS Holdings is well known by investors, and plenty of clever analysts have tried to predict the future profit levels. So it makes a lot of sense to check out what analysts think GDS Holdings will earn in the future (free analyst consensus estimates)
A Different Perspective
It’s nice to see that GDS Holdings shareholders have gained 33% (in total) over the last year. But the three year TSR of 81% per year is even better. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Even so, be aware that GDS Holdings is showing 2 warning signs in our investment analysis , you should know about…
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
If you spot an error that warrants correction, please contact the editor at [email protected] 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. Simply Wall St has no position in the stocks mentioned.
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