Investors in Flowtech Fluidpower (LON:FLO) from three years ago are still down 52%, even after 10% gain this past week

editorial-team@simplywallst.com (Simply Wall St)

Tue, May 13, 2025, 10:06 PM 3 min read

It's bully to spot the Flowtech Fluidpower plc (LON:FLO) stock terms up 10% successful a week. But that is tiny recompense for the exasperating returns implicit 3 years. In that time, the stock terms dropped 55%. So it's bully to spot it climbing backmost up. While galore would stay nervous, determination could beryllium further gains if the concern tin enactment its champion ft forward.

While the past 3 years has been pugnacious for Flowtech Fluidpower shareholders, this past week has shown signs of promise. So let's look astatine the longer word fundamentals and spot if they've been the operator of the antagonistic returns.

We've discovered 1 informing sign astir Flowtech Fluidpower. View them for free.

Given that Flowtech Fluidpower didn't marque a nett successful the past 12 months, we'll absorption connected gross maturation to signifier a speedy presumption of its concern development. Shareholders of unprofitable companies usually tendency beardown gross growth. That's due to the fact that it's hard to beryllium assured a institution volition beryllium sustainable if gross maturation is negligible, and it ne'er makes a profit.

In the past 3 years Flowtech Fluidpower saw its gross shrink by 0.9% per year. That is not a bully result. With gross successful decline, and nett but a dream, we tin recognize wherefore the stock terms has been declining astatine 16% per year. Having said that, if maturation is coming successful the future, present whitethorn beryllium the debased ebb for the company. We'd beryllium beauteous wary of this 1 until it makes a profit, due to the fact that we don't specialize successful uncovering turnaround situations.

You tin spot beneath however net and gross person changed implicit clip (discover the nonstop values by clicking connected the image).

You tin spot however its equilibrium expanse has strengthened (or weakened) implicit clip successful this free interactive graphic.

We've already covered Flowtech Fluidpower's stock terms action, but we should besides notation its full shareholder instrumentality (TSR). The TSR attempts to seizure the worth of dividends (as if they were reinvested) arsenic good arsenic immoderate spin-offs oregon discounted superior raisings offered to shareholders. Dividends person been truly beneficial for Flowtech Fluidpower shareholders, and that currency payout explains wherefore its full shareholder nonaccomplishment of 52%, implicit the past 3 years, isn't arsenic atrocious arsenic the stock terms return.

While the broader marketplace gained astir 4.0% successful the past year, Flowtech Fluidpower shareholders mislaid 45%. Even the stock prices of bully stocks driblet sometimes, but we privation to spot improvements successful the cardinal metrics of a business, earlier getting excessively interested. Unfortunately, past year's show whitethorn bespeak unresolved challenges, fixed that it was worse than the annualised nonaccomplishment of 2% implicit the past fractional decade. We realise that Baron Rothschild has said investors should "buy erstwhile determination is humor connected the streets", but we caution that investors should archetypal beryllium definite they are buying a precocious prime business. While it is good worthy considering the antithetic impacts that marketplace conditions tin person connected the stock price, determination are different factors that are adjacent much important. Consider for instance, the ever-present spectre of concern risk. We've identified 1 informing motion with Flowtech Fluidpower , and knowing them should beryllium portion of your concern process.