Investors in Bastei Lübbe (ETR:BST) have seen enviable returns of 538% over the past five years
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
During five years of share price growth, Bastei Lübbe achieved compound earnings per share (EPS) growth of 32% per year. This EPS growth is reasonably close to the 40% average annual increase in the share price. Therefore one could conclude that sentiment towards the shares hasn't morphed very much. Rather, the share price has approximately tracked EPS growth.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into Bastei Lübbe's key metrics by checking this interactive graph of Bastei Lübbe's earnings, revenue and cash flow.
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Bastei Lübbe, it has a TSR of 538% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
We're pleased to report that Bastei Lübbe shareholders have received a total shareholder return of 57% over one year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 45% 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 Bastei Lübbe better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for Bastei Lübbe you should know about.
But note: Bastei Lübbe 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 German exchanges.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
2 hours ago
- Yahoo
One Buy-Rated Stock With an Unbreakable Moat That You Can't Ignore
Intuitive Surgical (ISRG), valued at $177 billion, is a medical technology company best known for its da Vinci Surgical System. It has long held a monopoly on the robotic surgery market with the da Vinci systems, a robotic platform that helps surgeons perform minimally invasive surgeries. Its success is based on a two-decade-old ecosystem of surgeon loyalty, hospital dependency, and technological supremacy. During the same period, the stock returned more than 6,330%. With advancements in artificial intelligence (AI), Intuitive can now further develop its system, solidifying its unbreakable moat. Let us see if the stock is currently a buy. More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! A Unique and Strong Business Model Intuitive's da Vinci system is an advanced robotic system that allows surgeons to operate through small incisions using robotic arms and a 3D high-definition camera, giving them greater precision, control, and vision. These minimally invasive surgeries result in fewer complications, shorter hospital stays, and faster recovery times. Intuitive's business model includes not only selling these systems but also earning recurring revenue from sales of system-related instruments and accessories, as well as surgeon training programs. In the most recent second quarter, global da Vinci procedures increased 17% year over year. The company installed 395 da Vinci systems in Q2, including 180 da Vinci 5 systems, its fifth-generation robotic system, which the company launched in 2024. Total revenue increased by 21% to $2.44 billion, with adjusted earnings up 23% to $2.19 per share. Despite an increase in the average selling price (ASP) of da Vinci systems from $1.44 million to $1.5 million, systems revenue increased by 28% due to increased placements and demand for the company's latest da Vinci platforms. This reveals that hospitals are prioritizing investments in Intuitive's cutting-edge surgical platforms, despite broader capital expenditure constraints in some global markets. Additionally, instruments and accessories revenue also rose by 18% YoY to $1.47 billion. One standout performer in the quarter was the SP (Single Port) platform, which grew procedures by 88% year on year. It is used in confined anatomical spaces and complex cases such as colorectal or head and neck surgeries, where traditional multiport robotic systems may fail to function. In the second quarter, Intuitive placed 23 SP systems. Additionally, the Ion system, Intuitive's robotic-assisted platform for minimally invasive lung biopsies, saw a 52% increase in procedures to 35,000, with an installed base of 905 systems. Despite macroeconomic uncertainty and rising trade tensions, gross margins remained at 67.9%. The company repurchased $181 million worth of shares and spent $155 million in capex, yet grew its cash reserves to $9.5 billion. Looking ahead, the company intends to launch da Vinci 5 globally. Intuitive is well-positioned to execute, with a healthy balance sheet, recurring revenue model, and strong free cash flow. The Unbreakable Moat Intuitive has a two-decade headstart in the field of robotic surgery. According to GlobalData, Intuitive held 60% of the global robotic surgery market in 2024. This market, which was valued at $2.9 billion in 2024, is expected to reach $9.2 billion by 2034. Intuitive has installed over 11,000 da Vinci systems across 74 countries. Bringing a robotic system to market requires years of research and development, surgeon partnerships, billions of dollars, and regulatory hurdles. Even if a new entrant or an established player attempts to enter this space, they must show clinical efficacy, safety, and training scalability at a level that matches Intuitive. Rivals with deep pockets have developed alternatives. Notably, Medtronic (MDT) with its Hugo system, Johnson & Johnson (JNJ) with its Ottava surgical system, and Stryker (SYK) with its Mako system have all attempted but failed to gain market share. This is due in part to hospitals and surgeons being locked into the da Vinci ecosystem, where they have invested a significant amount of money to purchase these systems and train their surgeons. Once trained, switching platforms is costly and risky. That's what makes the moat so unbreakable. Besides the da Vinci, Intuitive has expanded its reach into pulmonology, colorectal, thoracic, and head-and-neck surgeries with Ion, SP, and staplers, creating a diversified model. Overall, Intuitive is a growth stock with decades of innovation, operational excellence, and a moat based on technological superiority and clinical outcomes that competitors will find difficult to replicate. Is ISRG Stock a Buy, Hold, or Sell on Wall Street? On Wall Street, overall, Intuitive stock is a 'Moderate Buy.' Out of the 28 analysts that cover the stock, 18 rate it a 'Strong Buy,' two suggest a 'Moderate Buy,' seven rate it a 'Hold,' and one says it is a 'Strong Sell.' The average target price of $602.96 is 21% above current levels. The high price estimate of $675 implies 36% upside over the next 12 months. Despite its unbreakable moat and excellent long-term growth prospects in the robotic surgery market, ISRG stock is currently trading at a premium of 60x forward earnings. Risk-averse investors can start accumulating shares around the $400 level to invest with a margin of safety. On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Yahoo
Dear Microsoft Stock Fans, Mark Your Calendars for Aug. 1
Microsoft (MSFT) investors, take note — Aug. 1 could mark a major turning point in the AI arms race. According to recent reports, OpenAI is expected to unveil its next-generation flagship model, GPT-5, as early as August, making it worthwhile for investors to tune in at the start of the month. Given Microsoft's multibillion-dollar partnership with OpenAI and its deep integration of GPT technology across its offerings, this potential launch is more than just a milestone for AI — it could be a catalyst for MSFT stock. In this article, we'll explore what GPT-5's launch could mean for Microsoft and how the company is uniquely positioned to capitalize on the breakthrough. With that, let's take a closer look! More News from Barchart Warren Buffett Warns Inflation Turns Business Into 'The Upside-Down World of Alice in Wonderland' But Weeds Out 'Bad Businesses' Why GOOGL Stock May Be the Market's Next Big Winner Alphabet Posts Lower Free Cash Flow and FCF Margins - Is GOOGL Stock Overvalued? Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. About Microsoft Stock Microsoft (MSFT) is a dominant force in the technology sector, boasting a diverse portfolio spanning software, cloud computing, AI, gaming, and hardware. Notably, the company is among the pioneers targeting the AI market through its partnership and substantial investments in OpenAI. MSFT's market cap currently stands at $3.82 trillion, ranking it as the world's second most valuable publicly traded company. Shares of the tech giant have rallied 21.4% on a year-to-date basis. MSFT stock has been trending upward since early April, initially driven by a pause in U.S. reciprocal tariffs and later getting a significant boost from its upbeat FQ3 earnings report. The stock's recent gains were supported by broader market strength, fueled by a solid start to the Q2 earnings season, as well as several U.S. trade deals and optimism for more to come. OpenAI Could Drop GPT-5 in August Last Thursday, The Verge reported that OpenAI, backed by Microsoft, is expected to launch its newest flagship model, GPT-5, as early as next month. Although no exact release date has been disclosed, the report noted that the company is still targeting a summer launch, and all signs suggest it's on schedule. GPT-5 is expected to mark a major advancement in the chatbot's intelligence and capabilities. GPT-5 is expected to combine the capabilities of several of OpenAI's earlier models, according to the report. The new model will feature capabilities such as memory, reasoning, vision, and task execution. The goal is to develop a unified, powerful AI system capable of handling a broad array of tasks, from writing and coding to data analysis, customer service, tutoring, and beyond. Alongside the full version of GPT-5, OpenAI also intends to launch smaller versions called GPT-5 Mini and GPT-5 Nano. Talks about GPT-5's launch surfaced just weeks after Elon Musk's xAI introduced Grok 4, its newest AI model aimed at competing with ChatGPT and Google's Gemini. With that, the release of GPT-5 could significantly enhance ChatGPT's capabilities and help OpenAI maintain its competitive edge. Moreover, this could be another win for Microsoft, which invested $10 billion in OpenAI in 2023, building on its earlier investments in 2019 and 2021. The investment grants Microsoft a significant equity stake in OpenAI's for-profit arm, as well as exclusive access to its APIs and models on Azure, revenue-sharing agreements, and rights to OpenAI's intellectual property through 2030. The partnership has proven highly beneficial for Microsoft, allowing it to offer OpenAI's technologies to its customers. In fiscal 2024, Microsoft's Intelligent Cloud segment, which includes its AI cloud services, contributed $105 billion to the company's total revenue of $245 billion. Meanwhile, a recent leak revealed that Microsoft is already testing GPT-5 options within its Copilot interface, indicating that Copilot may receive access to GPT-5 alongside ChatGPT once the model is officially announced. The Copilot app and website feature a hidden chat mode called 'Smart,' which hints at the use of GPT-5 to generate responses, according to The new mode is described as enabling Copilot to 'think deeply or quickly based on the task.' This new Smart mode also indicates that GPT-5 will combine both reasoning and non-reasoning capabilities, a development OpenAI CEO Sam Altman has previously hinted was in progress. Microsoft positions Copilot as the most user-friendly generative AI assistant, featuring an intuitive interface and emphasizing productivity-focused workflows and experiences. With that, integrating GPT-5 into Copilot would further reinforce Microsoft's position in delivering seamless AI-powered productivity across its ecosystem. Putting it all together, Microsoft's partnership with OpenAI supports its competitiveness in cloud services and its productivity and ERP software segments, thereby reinforcing its growth outlook. Another Key Catalyst to Watch Investors have another key catalyst to watch ahead of the potential GPT-5 release next month. Microsoft is set to report its fiscal fourth-quarter earnings after the closing bell on Wednesday, July 30. With that, let's recall management's guidance for the quarter, take a look at analyst expectations, and highlight the key points to watch. Analysts anticipate that the company will deliver double-digit growth in both revenue and earnings. The tech giant is expected to report fiscal fourth-quarter EPS of $3.38, a 14.46% year-over-year increase, with revenue projected at $73.81 billion, up 14.03% year-over-year. Notably, in the past 90 days, Microsoft has received 27 upward EPS revisions and just five downward ones for FQ4, along with 31 upward revenue revisions and only one downgrade, indicating strengthening fundamental momentum. Management has projected Productivity & Business Processes revenue to range between $32.05 billion and $32.35 billion in FQ4, representing 11%-12% growth in constant currency. Also, Intelligent Cloud revenue is expected to range from $28.75 billion to $29.05 billion, up 20%-22% year-over-year in constant currency. In addition, growth in More Personal Computing revenue is expected to be limited by a moderate decline in Windows OEM and Devices due to continued weak PC demand, though it will be supported by solid growth in Search and News Advertising, as well as Gaming. With that, the primary focus will be on the company's Azure cloud computing infrastructure business. In FQ3, Microsoft posted Azure revenue growth of 35% year-over-year in constant currency, beating analysts' expectations of 31% growth. For FQ4, Microsoft projected Azure revenue growth of 34% to 35% in constant currency. In addition, the company mentioned that its cloud AI services have been limited by supply constraints. Investors will also be paying close attention to the company's commentary on the outlook for AI and Copilot. Other key areas of focus in the earnings report include the company's capital spending plans and its relationship with AI partner OpenAI. In April, CFO Amy Hood stated that capital expenditures are projected to increase this fiscal year, though at a slower pace compared to fiscal 2025. Meanwhile, Wedbush analysts, who have Microsoft on their 'Best Ideas List,' boosted their price target on the stock to $600 last week. Wedbush stated that the company 'is just hitting its next phase of monetization on the AI front,' driven by the growing adoption of Copilot and the Azure cloud-computing platform. Multiple other Wall Street analysts are also strongly bullish on the software giant ahead of its upcoming earnings report. What Do Analysts Expect for MSFT Stock? Microsoft stock has a consensus 'Strong Buy' rating. Of the 46 analysts covering the stock, 38 recommend a 'Strong Buy,' five suggest a 'Moderate Buy,' and the remaining three advise holding. The mean price target for MSFT stock stands at $553.57, which is just 7.8% above Friday's closing price. On the date of publication, Oleksandr Pylypenko did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
5 hours ago
- Yahoo
Warren Buffett Has 56% Of His $258 Billion Portfolio's Value Exposed To AI: Here Are The 5 Stocks That Are Leveraging AI Within Berkshire's Holdings
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. The 'Oracle of Omaha' — Warren Buffett is not invested in any pure-play artificial intelligence (AI) companies, but he holds these five stocks via Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK), which leverage AI in their businesses on scale. Check out the BRK-B stock price here. What Happened: While the companies that Buffett holds via Berkshire don't directly make or create AI-related products or services, about 55.77% of the value of its total $258.701 billion portfolio is invested in these five firms, leveraging AI heavily on a day-to-day basis. Out of the total 36 holdings as of the end of the first quarter, Berkshire holds about $114.423 billion worth of shares in Apple Inc. (NASDAQ:AAPL), American Express Co. (NYSE:AXP), Visa Inc. (NYSE:V), Mastercard Inc. (NYSE:MA), and Inc. (NASDAQ:AMZN). Trending: 7,000+ investors have joined Timeplast's mission to eliminate microplastics—Company Holdings (as of March 31) % In The Portfolio Value (as of March 31) Apple Inc. (NASDAQ:AAPL) 300,000,000 26% $66.639 billion American Express Co. (NYSE:AXP) 151,610,700 16% $40.79 billion Visa Inc. (NYSE:V) 8,297,460 1.1% $2.907 billion Mastercard Inc. (NYSE:MA) 3,986,648 0.8% $2.185 billion Inc. (NASDAQ:AMZN) 10,000,000 0.7% $1.902 billion Apple Not an AI stock in the traditional sense, but Apple heavily integrates AI into its products and services. Features like Siri, on-device machine learning for Face ID, photo processing, and Apple Intelligence (AI-driven features in iOS) show deep AI investment. Its focus on privacy-preserving AI and custom silicon (e.g., Neural Engine in A-series chips) positions it as a leader in consumer AI applications. American Express Also, not an AI stock, Amex uses AI for credit risk assessment, fraud detection, and personalized marketing. Its data-driven approach leverages machine learning to enhance customer experiences, but its core business is financial services and payments, not AI development. Amazon While primarily an e-commerce and cloud computing giant, Amazon is a major AI player through Amazon Web Services (AWS), which offers AI and machine learning tools like SageMaker, Bedrock, and Titan models. AI powers Amazon's recommendation algorithms, logistics optimization, and Alexa. Its cloud dominance makes it a backbone for many AI companies, so it's closer to an AI stock than Not an AI stock, but Visa uses AI extensively for fraud detection, risk management, and transaction personalization. Its VisaNet processes massive data sets, leveraging machine learning to enhance security and efficiency. However, AI is a tool for Visa, not its core business, which remains payment processing. Mastercard Similar to Visa, Mastercard is not an AI stock but employs AI for fraud prevention, cybersecurity, and customer insights. Its AI-driven Decision Intelligence platform analyzes transaction patterns in real time. Like Visa, AI supports its payment network but isn't the primary focus. Why It Matters: Other prominent stocks within Berkshire's portfolio as of the end of the first quarter include Coca-Cola Co. (NYSE:KO), Bank of America Corp. (NYSE:BAC), Chevron Corp. (NYSE:CVX), Occidental Petroleum Corp. (NYSE:OXY), and Moody's Corp. (NYSE:MCO). As he remains the chairman of the Board, Buffett announced during Berkshire's 60th annual shareholders meeting that he will be retiring by the end of the year. Berkshire's board has voted to appoint Greg Abel as the CEO, effective Jan. 1, 2026. Read Next: $100k+ in investable assets? Match with a fiduciary advisor for free to learn how you can maximize your retirement and save on taxes – no cost, no obligation. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image Via Shutterstock This article Warren Buffett Has 56% Of His $258 Billion Portfolio's Value Exposed To AI: Here Are The 5 Stocks That Are Leveraging AI Within Berkshire's Holdings originally appeared on
