BioNTech (NASDAQ: BNTX) ‘s Marvelous 391% Share Price Increase Shows How Capitalism Can Create Wealth
For many, the main goal of investing in the stock market is to earn spectacular returns. When you buy and own the right business, the returns can make a huge difference to you and your family. In the case of BioNTech SE (NASDAQ: BNTX), the stock price has risen an astounding 391% in the past year alone. On top of that, the stock price rose 131% in about a quarter. Note that companies tend to grow for the long term, so last year’s returns may not reflect a long-term trend.
See our latest review for BioNTech
To paraphrase Benjamin Graham: In the short term the market is a voting machine, but in the long term it is a weighing machine. By comparing earnings per share (EPS) and changes in the share price over time, we can get a sense of how investors’ attitudes towards a company have changed over time.
Over the past year, BioNTech has increased its earnings per share from a loss to a profit.
When a company has just transitioned to profitability, growing earnings per share is not always the best way to look at the evolution of the share price.
However, year-over-year revenue growth of 2,173% would help. We are seeing some companies cut their profits in order to accelerate revenue growth.
The company’s revenue and profits (over time) are shown in the image below (click to see exact numbers).
BioNTech is well known to investors, and many smart analysts have tried to predict future profit levels. If you are thinking of buying or selling BioNTech shares, you should check this out free report showing analysts’ consensus estimates for future earnings.
A different perspective
BioNTech posted a total shareholder return of 391% for the past year. And the stock price momentum remains respectable, gaining 131% over the past three months. This suggests that the company continues to attract new investors. I find it very interesting to look at the long-term share price as an indicator of company performance. But to really get an overview, we have to take other information into account as well. Like risks, for example. Every business has them, and we’ve spotted 4 warning signs for BioNTech (2 of which are of concern!) that you should know about.
For those who like to find winning investments this free list of growing companies with recent insider buys, might be just the ticket.
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on US stock exchanges.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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