If You Had Bought X-FAB Silicon Foundries (EPA:XFAB) Shares A Year Ago You'd Have Earned 148% Returns

Unfortunately, investing is risky - companies can and do go bankrupt. But if you pick the right stock, you can make a lot more than 100%. For example, the X-FAB Silicon Foundries SE (EPA:XFAB) share price had more than doubled in just one year - up 148%. It's also good to see the share price up 35% over the last quarter. Zooming out, the stock is actually down 27% in the last three years.

See our latest analysis for X-FAB Silicon Foundries

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...' By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.

X-FAB Silicon Foundries went from making a loss to reporting a profit, in the last year.

When a company has just transitioned to profitability, earnings per share growth is not always the best way to look at the share price action.

Unfortunately X-FAB Silicon Foundries' fell 5.7% over twelve months. So using a snapshot of key business metrics doesn't give us a good picture of why the market is bidding up the stock.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

We're pleased to report that the CEO is remunerated more modestly than most CEOs at similarly capitalized companies. It's always worth keeping an eye on CEO pay, but a more important question is whether the company will grow earnings throughout the years. This free report showing analyst forecasts should help you form a view on X-FAB Silicon Foundries

A Different Perspective

It's nice to see that X-FAB Silicon Foundries shareholders have gained 148% (in total) over the last year. What is absolutely clear is that is far preferable to the dismal 8% average annual loss suffered over the last three years. We're generally cautious about putting too much weigh on shorter term data, but the recent improvement is definitely a positive. 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. Case in point: We've spotted 1 warning sign for X-FAB Silicon Foundries you should be aware of.

Of course X-FAB Silicon Foundries 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 FR 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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