WEBULL

Investors in Exel Composites Oyj (HEL:EXL1V) from five years ago are still down 71%, even after 12% gain this past week

Simply Wall St · 2d ago

While not a mind-blowing move, it is good to see that the Exel Composites Oyj (HEL:EXL1V) share price has gained 13% in the last three months. But spare a thought for the long term holders, who have held the stock as it bled value over the last five years. Five years have seen the share price descend precipitously, down a full 94%. The recent bounce might mean the long decline is over, but we are not confident. The million dollar question is whether the company can justify a long term recovery. We really feel for shareholders in this scenario. It's a good reminder of the importance of diversification, and it's worth keeping in mind there's more to life than money, anyway.

The recent uptick of 12% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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Exel Composites Oyj isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. 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.

Over half a decade Exel Composites Oyj reduced its trailing twelve month revenue by 5.3% for each year. While far from catastrophic that is not good. The share price fall of 14% (per year, over five years) is a stern reminder that money-losing companies are expected to grow revenue. It takes a certain kind of mental fortitude (or recklessness) to buy shares in a company that loses money and doesn't grow revenue. Fear of becoming a 'bagholder' may be keeping people away from this stock.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
HLSE:EXL1V Earnings and Revenue Growth December 24th 2025

Take a more thorough look at Exel Composites Oyj's financial health with this free report on its balance sheet.

A Dividend Lost

The share price return figures discussed above don't include the value of dividends paid previously, but the total shareholder return (TSR) does. Many would argue the TSR gives a more complete picture of the value a stock brings to its holders. Over the last 5 years, Exel Composites Oyj generated a TSR of -71%, which is, of course, better than the share price return. Although the company had to cut dividends, it has paid cash to shareholders in the past.

A Different Perspective

It's nice to see that Exel Composites Oyj shareholders have received a total shareholder return of 55% over the last year. That certainly beats the loss of about 11% per year over the last half decade. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. It's always interesting to track share price performance over the longer term. But to understand Exel Composites Oyj better, we need to consider many other factors. To that end, you should learn about the 2 warning signs we've spotted with Exel Composites Oyj (including 1 which can't be ignored) .

But note: Exel Composites Oyj 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 Finnish exchanges.