Swiss Steel Holding (VTX:STLN) Share Prices Have Dropped 65% In The Last Three Years

Swiss Steel Holding AG (VTX:STLN) shareholders should be happy to see the share price up 12% in the last quarter. But that is small recompense for the exasperating returns over three years. Indeed, the share price is down a tragic 65% in the last three years. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.

View our latest analysis for Swiss Steel Holding

Swiss Steel Holding 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

In the last three years Swiss Steel Holding saw its revenue shrink by 2.2% per year. That's not what investors generally want to see. The share price decline of 18% compound, over three years, is understandable given the company doesn't have profits to boast of, and revenue is moving in the wrong direction. Having said that, if growth is coming in the future, now may be the low ebb for the company. We don't generally like to own companies that lose money and can't grow revenues. But any company is worth looking at when it makes a maiden profit.

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

If you are thinking of buying or selling Swiss Steel Holding stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

It's nice to see that Swiss Steel Holding shareholders have received a total shareholder return of 28% over the last year. That certainly beats the loss of about 9% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Take risks, for example - Swiss Steel Holding has 3 warning signs (and 1 which is a bit concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can 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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