Stock Analysis

Investors Who Bought flatexDEGIRO (ETR:FTK) Shares Five Years Ago Are Now Up 229%

XTRA:FTK
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When you buy shares in a company, it's worth keeping in mind the possibility that it could fail, and you could lose your money. But when you pick a company that is really flourishing, you can make more than 100%. For instance, the price of flatexDEGIRO AG (ETR:FTK) stock is up an impressive 229% over the last five years. Also pleasing for shareholders was the 34% gain in the last three months.

View our latest analysis for flatexDEGIRO

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 way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

During the five years of share price growth, flatexDEGIRO moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

earnings-per-share-growth
XTRA:FTK Earnings Per Share Growth November 28th 2020

We know that flatexDEGIRO has improved its bottom line lately, but is it going to grow revenue? Check if analysts think flatexDEGIRO will grow revenue in the future.

A Different Perspective

It's nice to see that flatexDEGIRO shareholders have received a total shareholder return of 129% over the last year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 27% per year), it would seem that the stock's performance has improved in recent times. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. It's always interesting to track share price performance over the longer term. But to understand flatexDEGIRO better, we need to consider many other factors. For instance, we've identified 2 warning signs for flatexDEGIRO that you should be aware of.

Of course flatexDEGIRO 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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Valuation is complex, but we're helping make it simple.

Find out whether flatexDEGIRO is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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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