Reflecting on Schoeller-Bleckmann Oilfield Equipment's (VIE:SBO) Share Price Returns Over The Last Three Years

While it may not be enough for some shareholders, we think it is good to see the Schoeller-Bleckmann Oilfield Equipment Aktiengesellschaft (VIE:SBO) share price up 25% in a single quarter. But that doesn't change the fact that the returns over the last three years have been disappointing. In that time, the share price dropped 65%. So it's good to see it climbing back up. While many would remain nervous, there could be further gains if the business can put its best foot forward.

Check out our latest analysis for Schoeller-Bleckmann Oilfield Equipment

Schoeller-Bleckmann Oilfield Equipment wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. When a company doesn't make profits, we'd generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over three years, Schoeller-Bleckmann Oilfield Equipment grew revenue at 7.2% per year. That's not a very high growth rate considering it doesn't make profits. This uninspiring revenue growth has no doubt helped send the share price lower; it dropped 18% during the period. When a stock falls hard like this, some investors like to add the company to a watchlist (in case the business recovers, longer term). Keep in mind it isn't unusual for good businesses to have a tough time or a couple of uninspiring years.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

You can see how its balance sheet has strengthened (or weakened) over time in this free interactive graphic.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Schoeller-Bleckmann Oilfield Equipment the TSR over the last 3 years was -63%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

While the broader market lost about 7.3% in the twelve months, Schoeller-Bleckmann Oilfield Equipment shareholders did even worse, losing 42% (even including dividends). Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 7% over the last half decade. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. It's always interesting to track share price performance over the longer term. But to understand Schoeller-Bleckmann Oilfield Equipment better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Schoeller-Bleckmann Oilfield Equipment you should be aware of.

We will like Schoeller-Bleckmann Oilfield Equipment better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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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