ROY Ceramics SE (ETR:RY8) shareholders might be concerned after seeing the share price drop 24% in the last quarter. But that doesn’t change the fact that the returns over the last three years have been pleasing. After all, the share price is up a market-beating 85% in that time.
Check out our latest analysis for ROY Ceramics
Given that ROY Ceramics 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. When a company doesn’t make profits, we’d generally expect to see good revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.
Over the last three years ROY Ceramics has grown its revenue at 92% annually. That’s much better than most loss-making companies. The share price rise of 23% per year throughout that time is nice to see, and given the revenue growth, that gain seems somewhat justified. So now might be the perfect time to put ROY Ceramics on your radar. A window of opportunity may reveal itself with time, if the business can trend to profitability.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
XTRA:RY8 Income Statement May 11th 2020
This free interactive report on ROY Ceramics’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 ROY Ceramics shareholders have received a total shareholder return of 72% over one year. Notably the five-year annualised TSR loss of 18% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It’s always interesting to track share price performance over the longer term. But to understand ROY Ceramics better, we need to consider many other factors. For example, we’ve discovered 5 warning signs for ROY Ceramics (2 are a bit unpleasant!) that you should be aware of before investing here.
But note: ROY Ceramics 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 DE exchanges.
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.
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. Thank you for reading.