KHD Humboldt Wedag International (ETR:KWG) Shareholders Have Enjoyed A 66% Share Price Gain

The simplest way to invest in stocks is to buy exchange traded funds. But you can significantly boost your returns by picking above-average stocks. For example, the KHD Humboldt Wedag International AG (ETR:KWG) share price is up 66% in the last year, clearly besting the market return of around 2.2% (not including dividends). That's a solid performance by our standards! In contrast, the longer term returns are negative, since the share price is 26% lower than it was three years ago.

View our latest analysis for KHD Humboldt Wedag International

Given that KHD Humboldt Wedag International didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

KHD Humboldt Wedag International actually shrunk its revenue over the last year, with a reduction of 22%. The stock is up 66% in that time, a fine performance given the revenue drop. To us that means that there isn't a lot of correlation between the past revenue performance and the share price, but a closer look at analyst forecasts and the bottom line may well explain a lot.

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

Take a more thorough look at KHD Humboldt Wedag International's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that KHD Humboldt Wedag International shareholders have received a total shareholder return of 66% over one year. That certainly beats the loss of about 6% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. You could get a better understanding of KHD Humboldt Wedag International's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

Of course KHD Humboldt Wedag International may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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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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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