Ascom Holding (VTX:ASCN) Share Prices Have Dropped 50% In The Last Three Years

Ascom Holding AG (VTX:ASCN) shareholders should be happy to see the share price up 10% in the last month. But that doesn't help the fact that the three year return is less impressive. In fact, the share price is down 50% in the last three years, falling well short of the market return.

View our latest analysis for Ascom Holding

Because Ascom Holding made a loss in the last twelve months, 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 it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

Over the last three years, Ascom Holding's revenue dropped 4.0% per year. That is not a good result. The stock has disappointed holders over the last three years, falling 14%, annualized. That makes sense given the lack of either profits or revenue growth. Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

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

Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.

What about the Total Shareholder Return (TSR)?

We've already covered Ascom Holding's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Its history of dividend payouts mean that Ascom Holding's TSR, which was a 47% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

We're pleased to report that Ascom Holding shareholders have received a total shareholder return of 25% over one year. There's no doubt those recent returns are much better than the TSR loss of 3% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. Shareholders might want to examine this detailed historical graph of past earnings, revenue and cash flow.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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