Should Bertrandt (ETR:BDT) Be Disappointed With Their 76% Profit?

Diversification is a key tool for dealing with stock price volatility. But the goal is to pick stocks that do better than average. Bertrandt Aktiengesellschaft (ETR:BDT) has done well over the last year, with the stock price up 76% beating the market return of 64% (not including dividends). Zooming out, the stock is actually down 50% in the last three years.

See our latest analysis for Bertrandt

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Over the last twelve months Bertrandt went from profitable to unprofitable. While this may prove temporary, we'd consider it a negative, so we would not have expected to see the share price up. It may be that the company has done well on other metrics.

We are skeptical of the suggestion that the 0.3% dividend yield would entice buyers to the stock. Unfortunately Bertrandt's fell 19% over twelve months. So the fundamental metrics don't provide an obvious explanation for the share price gain.

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

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

A Different Perspective

We're pleased to report that Bertrandt shareholders have received a total shareholder return of 77% over one year. And that does include the dividend. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Bertrandt better, we need to consider many other factors. Take risks, for example - Bertrandt has 1 warning sign we think you should be aware of.

We will like Bertrandt 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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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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