Meyer Burger Technology (VTX:MBTN) adds CHF87m to market cap in the last 7 days, although investors from five years ago are still 55% down

While it’s not a mind-blowing move, it’s good to see the Meyer Burger Technology AG (VTX:MBTN) share price has risen 10% in the last three months. But that is little consolation for those who have stood for the last half decade, sitting on a great loss. In fact, the stock price has dropped quite a bit, down 66% in that time. Some might say that the recent rebound is to be expected after such a bad drop. Of course, this could be the beginning of a change.

While the past five years have been difficult for Meyer Burger Technology shareholders, the past week has shown promising signs. So let’s take a look at longer term fundamentals and see if they have been the driver of negative returns.

See our latest review of Meyer Burger Technology

Since Meyer Burger Technology did not make a profit in the last twelve months, we will focus on revenue growth to form a quick view of their business development. When a business is not making a profit, we generally expect to see good revenue growth. This is because it is difficult to be sure that a business will be sustainable if revenue growth is negligible and it never makes a profit.

For more than half a decade, Meyer Burger Technology reduced its last twelve month revenue by 41% each year. That puts him in an unattractive cohort, to put it mildly. The market has arguably responded appropriately to this trading performance by sending the stock price down 11% (annualized) in the same time period. In general, we don’t like to own companies that lose money and don’t increase their income. It is better that you spend your money on a leisure activity. This looks like a really risky stock to buy, at a glance.

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

earnings-and-revenue-growth
SWX: MBTN Earnings & Revenue Growth Oct 5, 2022

East free Meyer Burger Technology’s interactive Balance Sheet Strength Report is a great place to start if you want to dig deeper into the stock.

What about total shareholder return (TSR)?

Investors should note that there is a difference between Meyer Burger Technology’s total shareholder return (TSR) and the change in its stock price, which we have covered above. The TSR attempts to capture the value of dividends (as if reinvested), as well as any spin-offs or discounted capital increases offered to shareholders. We note that Meyer Burger Technology’s TSR, at -55%, is higher than its stock price return of -66%. When you consider that it has not been paying dividends, this data suggests that shareholders have benefited from a spin-off or have had the opportunity to acquire shares at attractive prices in a discounted capital increase.

a different perspective

We are pleased to report that Meyer Burger Technology shareholders have received a total shareholder return of 7.6% for one year. In particular, the five-year annualized TSR loss of 9% per year compares very unfavorably with recent stock price performance. The long-term loss makes us cautious, but the short-term TSR gain certainly suggests a brighter future. It is always interesting to track the performance of the stock price over the long term. But to better understand Meyer hamburger technology, we must consider many other factors. Still, keep in mind that Meyer Burger Technology is showing 2 warning signs in our investment analysis you should know about…

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We’ll like Meyer Burger Technology better if we see big internal purchases. While we wait, take a look at this free list of growing companies with significant and recent internal purchases.

Please note that the market returns quoted in this article reflect the weighted average market returns of stocks currently traded on CH exchanges.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell any stock, and it does not take into account your goals or financial situation. Our goal is to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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find out if Meyer Burger Technology is potentially overvalued or undervalued by consulting our comprehensive analysis, which includes fair value estimates, risks and caveats, dividends, internal transactions and financial health.

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