Should va-Q-tec (ETR:VQT) Be Disappointed With Their 98% Profit?

It might be of some concern to shareholders to see the va-Q-tec AG (ETR:VQT) share price down 13% in the last month. But looking back over the last year, the returns have actually been rather pleasing! In that time we've seen the stock easily surpass the market return, with a gain of 98%.

View our latest analysis for va-Q-tec

Given that va-Q-tec 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. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.

va-Q-tec grew its revenue by 14% last year. We respect that sort of growth, no doubt. Buyers pushed the share price 98% in response, which isn't unreasonable. If revenue stays on trend, there may be plenty more share price gains to come. But it's crucial to check profitability and cash flow before forming a view on the future.

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

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

A Different Perspective

Pleasingly, va-Q-tec's total shareholder return last year was 98%. That gain actually surpasses the 25% TSR it generated (per year) over three years. The improving returns to shareholders suggests the stock is becoming more popular with time. You could get a better understanding of va-Q-tec's growth by checking out this more detailed historical graph of earnings, revenue and cash flow.

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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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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