Nordex SE (ETR:NDX1) shareholders will be happy to see the share price is up 26% in the last month. But over the past three years, we've seen a pretty severe decline. During that time, the stock price fell 57%. Some might say the recent rebound should be expected after such a severe decline. Although there is hope in this rise, the turnaround is often unstable.
Next, let's look at the company's fundamentals to see if long-term shareholder returns are in line with the performance of the underlying business.
Check out our latest analysis for Nordex.
Nordex made a loss in the last twelve months, so we think the market is probably more focused on revenue and revenue growth, at least for now. Shareholders of unprofitable companies typically want strong earnings growth. As you can imagine, sustaining rapid revenue growth often leads to rapid profit growth.
Nordex grew its revenue at 9.6% per year over three years. This is a significant sales growth rate. This contrasts with the stock's slump, which has seen its stock decline by a compounded 16% over three years. To be honest, I'm surprised that there is such a wide discrepancy between revenue growth and share price growth. It's well worth taking a closer look at the company to determine its growth trends (and balance sheet strength).
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We're pleased to report that our CEO is paid more modestly than most CEOs at similarly capitalized companies. While it's always worth keeping an eye on CEO pay, the more important question is whether the company will grow its earnings over the years. You can see what analysts are predicting for his Nordex in this article. interaction Graph of future profit forecast.
What about total shareholder return (TSR)?
We've already covered Nordex's share price movement, but we should also mention its total shareholder return (TSR). The TSR seeks to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Nordex does not pay a dividend, but its TSR of -51% is higher than its price return of -57%, suggesting it has either spun off a business or raised capital at a discount. thereby providing added value to shareholders.
different perspective
While the broader market has gained about 8.9% in the last year, Nordex shareholders have lost 10%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the 1.5% annualized loss over the past five years. Generally speaking, long-term stock price weakness can be a bad sign, but contrarian investors may want to research the stock in hopes of a turnaround. It's always interesting to track stock performance over the long term. But to understand Nordex better, you need to consider many other factors. For example, consider risk.Every company has them and we discovered that 1 warning sign for Nordex you should know about.
For people who like searching succeed in investing this free This list of growing companies with recent insider purchasing may be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges.
Have feedback on this article? Curious about its content? contact Please contact us directly. Alternatively, email our editorial team at Simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
