As an investor its worth striving to ensure your overall portfolio beats the market average. But in any portfolio, there are likely to be some stocks that fall short of that benchmark. We regret to report that long term Unternehmens Invest AG (VIE:UIV) shareholders have had that experience, with the share price dropping 29% in three years, versus a market return of about 23%. Furthermore, it’s down 16% in about a quarter. That’s not much fun for holders. This could be related to the recent financial results – you can catch up on the most recent data by reading our company report.
Given that Unternehmens Invest 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. That’s because it’s hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
In the last three years, Unternehmens Invest saw its revenue grow by 75% per year, compound. That is faster than most pre-profit companies. While its revenue increased, the share price dropped at a rate of 9% per year. That seems like an unlucky result for holders. It seems likely that actual growth fell short of shareholders’ expectations. Still, with high hopes now tempered, now might prove to be an opportunity to buy.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.
A Different Perspective
Unternehmens Invest shareholders gained a total return of 11% during the year. But that was short of the market average. But at least that’s still a gain! Over five years the TSR has been a reduction of 1.8% per year, over five years. 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 Unternehmens Invest better, we need to consider many other factors. Take risks, for example – Unternehmens Invest has 2 warning signs we think you should be aware of.
Of course Unternehmens Invest may not be the best stock to buy. So you may wish to see this free collection of growth stocks.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AT exchanges.
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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. 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.
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