Stock Analysis

Would Shareholders Who Purchased Fulltech Fiber Glass' (GTSM:1815) Stock Three Years Be Happy With The Share price Today?

TPEX:1815
Source: Shutterstock

It is doubtless a positive to see that the Fulltech Fiber Glass Corp. (GTSM:1815) share price has gained some 32% in the last three months. But that doesn't change the fact that the returns over the last three years have been less than pleasing. After all, the share price is down 35% in the last three years, significantly under-performing the market.

Check out our latest analysis for Fulltech Fiber Glass

Because Fulltech Fiber Glass made a loss in the last twelve months, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.

In the last three years Fulltech Fiber Glass saw its revenue shrink by 8.1% per year. That's not what investors generally want to see. The stock has disappointed holders over the last three years, falling 10%, annualized. And with no profits, and weak revenue, are you surprised? Of course, sentiment could become too negative, and the company may actually be making progress to profitability.

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

earnings-and-revenue-growth
GTSM:1815 Earnings and Revenue Growth December 21st 2020

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

What about the Total Shareholder Return (TSR)?

We've already covered Fulltech Fiber Glass' share price action, but we should also mention its total shareholder return (TSR). The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Fulltech Fiber Glass' TSR of was a loss of 30% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.

A Different Perspective

Fulltech Fiber Glass provided a TSR of 9.0% over the last twelve months. But that was short of the market average. On the bright side, that's still a gain, and it's actually better than the average return of 8% over half a decade This suggests the company might be improving over time. 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. Take risks, for example - Fulltech Fiber Glass has 3 warning signs (and 2 which are a bit unpleasant) we think you should know about.

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 TW 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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