FMSA’s YTD returns versus the industry
Fairmount Santrol Holdings’ (FMSA) year-to-date returns were nearly -57% as of November 20. Since December 30, 2016, FMSA has underperformed the US rig count and the Dow Jones Industrial Average (DJIA-INDEX), the Energy Select Sector SPDR ETF (XLE), the VanEck Vectors Oil Services ETF (OIH), and the SPDR S&P 500 ETF (SPY).
Despite coming off its beginning-of-the-year price, FMSA’s stock price has recovered strongly in the past month. Since October 20, FMSA has risen ~30%. It outperformed OIH and SPY considerably during this period.
How FMSA’s revenues and earnings performed in 9M17?
From 4Q16 through 3Q17, FMSA’s revenues nearly doubled. Its net income also turned around to a $35 million profit in 3Q17 from a ~$20 million net loss in 4Q16. FMSA’s free cash flows also rose 9.3x in 3Q17 over 4Q16. FMSA’s net debt fell 7% during the period.
Next, we’ll compare year-to-date returns from Tesco Corporation (TESO) with market indicators and analyze the fundamental metrics.