The Materialise (NASDAQ:MTLS) Share Price Is Up 963% And Shareholders Are Delighted

By
Simply Wall St
Published
January 11, 2021
NasdaqGS:MTLS
Source: Shutterstock

We think all investors should try to buy and hold high quality multi-year winners. And we've seen some truly amazing gains over the years. Just think about the savvy investors who held Materialise NV (NASDAQ:MTLS) shares for the last five years, while they gained 963%. If that doesn't get you thinking about long term investing, we don't know what will. And in the last month, the share price has gained 18%.

Anyone who held for that rewarding ride would probably be keen to talk about it.

See our latest analysis for Materialise

Given that Materialise 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. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

For the last half decade, Materialise can boast revenue growth at a rate of 15% per year. That's a fairly respectable growth rate. However, the share price gain of 60% during the period is considerably stronger. It might not be cheap but a (long-term) growth stock like this is usually well worth taking a closer look at.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

earnings-and-revenue-growth
NasdaqGS:MTLS Earnings and Revenue Growth January 12th 2021

This free interactive report on Materialise'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 Materialise shareholders have received a total shareholder return of 236% over one year. Since the one-year TSR is better than the five-year TSR (the latter coming in at 60% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. It's always interesting to track share price performance over the longer term. But to understand Materialise better, we need to consider many other factors. For example, we've discovered 2 warning signs for Materialise that you should be aware of before investing here.

But note: Materialise may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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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Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.