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It might seem bad, but the worst that can happen when you buy a stock (without leverage) is that its share price goes to zero. But in contrast you can make much more than 100% if the company does well. For example, the Kordellos Ch. Bros S.A. (ATH:KORDE) share price has soared 103% in the last three years. How nice for those who held the stock! Also pleasing for shareholders was the 16% gain in the last three months. But this could be related to the strong market, which is up 15% in the last three months.
Check out our latest analysis for Kordellos Ch. Bros
Because Kordellos Ch. Bros is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
Over the last three years Kordellos Ch. Bros has grown its revenue at 6.8% annually. That's not a very high growth rate considering it doesn't make profits. In contrast, the stock has popped 27% per year in that time - an impressive result. We'd need to take a closer look at the revenue and profit trends to see whether the improvements might justify that sort of increase. It seems likely that the market is pretty optimistic about Kordellos Ch. Bros, given it is losing money.
Depicted in the graphic below, you'll see revenue and earnings over time. If you want more detail, you can click on the chart itself.
Balance sheet strength is crucual. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
A Dividend Lost
The value of past dividends are accounted for in the total shareholder return (TSR), but not in the share price return mentioned above. By accounting for the value of dividends paid, the TSR can be seen as a more complete measure of the value a company brings to its shareholders. Kordellos Ch. Bros's TSR over the last 3 years is 110%; better than its share price return. Although the company had to cut dividends, it has paid cash to shareholders in the past.
A Different Perspective
Investors in Kordellos Ch. Bros had a tough year, with a total loss of 8.2%, against a market gain of about 3.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. On the bright side, long term shareholders have made money, with a gain of 3.7% per year over half a decade. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.