Klöckner & Co (ETR:KCO) Share Prices Have Dropped 24% In The Last Three Years

Klöckner & Co SE (ETR:KCO) shareholders will doubtless be very grateful to see the share price up 54% in the last quarter. But that doesn't help the fact that the three year return is less impressive. After all, the share price is down 24% in the last three years, significantly under-performing the market.

See our latest analysis for Klöckner & Co

Because Klöckner & Co 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. When a company doesn't make profits, we'd generally expect to see good 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, Klöckner & Co's revenue dropped 3.8% per year. That's not what investors generally want to see. The stock has disappointed holders over the last three years, falling 7%, annualized. That makes sense given the lack of either profits or revenue growth. However, in this kind of situation you can sometimes find opportunity, where sentiment is negative but the company is actually making good progress.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

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 Klöckner & Co's share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Klöckner & Co's TSR of was a loss of 17% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

We're pleased to report that Klöckner & Co shareholders have received a total shareholder return of 20% over one year. That's better than the annualised return of 2% over half a decade, implying that the company is doing better recently. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. 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. To that end, you should be aware of the 1 warning sign we've spotted with Klöckner & Co .

We will like Klöckner & Co 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 DE exchanges.

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