Singulus Technologies (ETR:SNG) Share Prices Have Dropped 83% In The Last Five Years

By
Simply Wall St
Published
May 26, 2021
XTRA:SNG
Source: Shutterstock

Long term investing is the way to go, but that doesn't mean you should hold every stock forever. We really hate to see fellow investors lose their hard-earned money. Anyone who held Singulus Technologies AG (ETR:SNG) for five years would be nursing their metaphorical wounds since the share price dropped 83% in that time. Shareholders have had an even rougher run lately, with the share price down 14% in the last 90 days.

We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

View our latest analysis for Singulus Technologies

Singulus Technologies isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

In the last half decade, Singulus Technologies saw its revenue increase by 0.7% per year. That's not a very high growth rate considering it doesn't make profits. Nonetheless, it's fair to say the rapidly declining share price (down 13%, compound, over five years) suggests the market is very disappointed with this level of growth. While we're definitely wary of the stock, after that kind of performance, it could be an over-reaction. A company like this generally needs to produce profits before it can find favour with new investors.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

earnings-and-revenue-growth
XTRA:SNG Earnings and Revenue Growth May 27th 2021

This free interactive report on Singulus Technologies' balance sheet strength is a great place to start, if you want to investigate the stock further.

A Different Perspective

Singulus Technologies provided a TSR of 26% over the last twelve months. But that was short of the market average. But at least that's still a gain! Over five years the TSR has been a reduction of 13% per year, over five years. It could well be that the business is stabilizing. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 4 warning signs we've spotted with Singulus Technologies (including 1 which makes us a bit uncomfortable) .

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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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