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Cimpress (NASDAQ:CMPR) shareholders have endured a 56% loss from investing in the stock a year ago

Taking the occasional loss comes part and parcel with investing on the stock market. And unfortunately for Cimpress plc (NASDAQ:CMPR) shareholders, the stock is a lot lower today than it was a year ago. The share price is down a hefty 56% in that time. Even if you look out three years, the returns are still disappointing, with the share price down52% in that time. Shareholders have had an even rougher run lately, with the share price down 31% in the last 90 days.

So let's have a look and see if the longer term performance of the company has been in line with the underlying business' progress.

See our latest analysis for Cimpress

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Unfortunately Cimpress reported an EPS drop of 40% for the last year. Readers should not this outcome was influenced by the impact of extraordinary items on EPS. And indeed the company lost money over the last twelve months. This reduction in EPS is not as bad as the 56% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

earnings-per-share-growth
earnings-per-share-growth

Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here.

A Different Perspective

While the broader market lost about 12% in the twelve months, Cimpress shareholders did even worse, losing 56%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 9% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Cimpress (of which 1 shouldn't be ignored!) you should know about.

Of course Cimpress may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

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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.