Ypsomed Holding (VTX:YPSN) shareholders have earned a 7.4% CAGR over the last three years

By
Simply Wall St
Published
April 12, 2022
SWX:YPSN
Source: Shutterstock

It hasn't been the best quarter for Ypsomed Holding AG (VTX:YPSN) shareholders, since the share price has fallen 13% in that time. In contrast the stock is up over the last three years. Arguably you'd have been better off buying an index fund, because the gain of 22% in three years isn't amazing.

With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.

View our latest analysis for Ypsomed Holding

Given that Ypsomed Holding only made minimal earnings in the last twelve months, we'll focus on revenue to gauge its business development. As a general rule, we think this kind of company is more comparable to loss-making stocks, since the actual profit is so low. For shareholders to have confidence a company will grow profits significantly, it must grow revenue.

Ypsomed Holding actually saw its revenue drop by 5.4% per year over three years. The modest share price gain of 7% per year suggests holders are sanguine about the falling revenue. Profit focussed investors would generally avoid a company with falling revenue and zero profits, since it's hard to imagine when profit might come.

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

earnings-and-revenue-growth
SWX:YPSN Earnings and Revenue Growth April 12th 2022

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

A Different Perspective

Ypsomed Holding shareholders gained a total return of 1.4% during the year. Unfortunately this falls short of the market return. But at least that's still a gain! Over five years the TSR has been a reduction of 3% per year, over five years. So this might be a sign the business has turned its fortunes around. It's always interesting to track share price performance over the longer term. But to understand Ypsomed Holding better, we need to consider many other factors. Case in point: We've spotted 3 warning signs for Ypsomed Holding you should be aware of, and 1 of them is a bit unpleasant.

We will like Ypsomed Holding 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 CH exchanges.

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