Investors Who Bought Maternus-Kliniken (ETR:MAK) Shares Five Years Ago Are Now Up 356%

For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. Just think about the savvy investors who held Maternus-Kliniken Aktiengesellschaft (ETR:MAK) shares for the last five years, while they gained 356%. If that doesn't get you thinking about long term investing, we don't know what will. It's also good to see the share price up 10% over the last quarter. The company reported its financial results recently; you can catch up on the latest numbers by reading our company report.

View our latest analysis for Maternus-Kliniken

Given that Maternus-Kliniken 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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 5 years Maternus-Kliniken saw its revenue grow at 0.8% per year. Put simply, that growth rate fails to impress. So shareholders should be pretty elated with the 35% increase per year, in that time. We don't think the growth over the period is that great, but it could be that faster growth appears to some to be on the horizon. It's not immediately obvious to us why the market has been so enthusiastic about the stock, but a more detailed look at revenue and profit trends might reveal why shareholders are optimistic.

You can see how earnings and revenue have changed over time in the image below.

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

A Different Perspective

We regret to report that Maternus-Kliniken shareholders are down 12% for the year. Unfortunately, that's worse than the broader market decline of 0.8%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Longer term investors wouldn't be so upset, since they would have made 35%, each year, over five years. If the fundamental data continues to indicate long term sustainable growth, the current sell-off could be an opportunity worth considering. Shareholders might want to examine this detailed historical graph of past 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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.