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Those Who Purchased Stemmer Imaging (ETR:S9I) Shares A Year Ago Have A 56% Loss To Show For It

The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Stemmer Imaging AG (ETR:S9I) have suffered share price declines over the last year. The share price is down a hefty 56% in that time. Stemmer Imaging hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. It's down 60% in about a quarter. However, one could argue that the price has been influenced by the general market, which is down 24% in the same timeframe.

See our latest analysis for Stemmer Imaging

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Unhappily, Stemmer Imaging had to report a 16% decline in EPS over the last year. The share price decline of 56% is actually more than the EPS drop. So it seems the market was too confident about the business, a year ago.

You can see how EPS has changed over time in the image below (click on the chart to see the exact values).

XTRA:S9I Past and Future Earnings April 1st 2020
XTRA:S9I Past and Future Earnings April 1st 2020

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

A Different Perspective

We doubt Stemmer Imaging shareholders are happy with the loss of 55% over twelve months (even including dividends) . That falls short of the market, which lost 15%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. It's worth noting that the last three months did the real damage, with a 60% decline. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. It's always interesting to track share price performance over the longer term. But to understand Stemmer Imaging better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 4 warning signs with Stemmer Imaging , and understanding them should be part of your investment process.

We will like Stemmer Imaging better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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