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Investors in FRP Holdings (NASDAQ:FRPH) have made a decent return of 35% over the past five years

Added 05-14-22 09:04:02am EST - “When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Furthermore...” - News.yahoo.com

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Posted By TheNewsCommenter: From News.yahoo.com: “Investors in FRP Holdings (NASDAQ:FRPH) have made a decent return of 35% over the past five years”. Below is an excerpt from the article.

When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Furthermore, you'd generally like to see the share price rise faster than the market. Unfortunately for shareholders, while the FRP Holdings, Inc. (NASDAQ:FRPH) share price is up 35% in the last five years, that's less than the market return. Zooming in, the stock is actually down 3.5% in the last year.

So let's assess the underlying fundamentals over the last 5 years and see if they've moved in lock-step with shareholder returns.

We don't think that FRP Holdings' modest trailing twelve month profit has the market's full attention at the moment. We think revenue is probably a better guide. Generally speaking, we'd consider a stock like this alongside loss-making companies, simply because the quantum of the profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

In the last 5 years FRP Holdings saw its revenue grow at 2.1% per year. Put simply, that growth rate fails to impress. It's probably fair to say that the modest growth is reflected in the modest share price gain of 6% per year. It seems likely that we'll have to zoom in on the data, including profits, to understand if there is an opportunity here.

The company's revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).

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