The nature of investing is that you win some, and you lose some. And there's no doubt that CFT S.p.A. (BIT:CFT) stock has had a really bad year. To wit the share price is down 58% in that time. CFT hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. Unhappily, the share price slid 5.4% in the last week.
See our latest analysis for CFT
To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' 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.
Unfortunately CFT reported an EPS drop of 87% for the last year. This fall in the EPS is significantly worse than the 58% the share price fall. It may have been that the weak EPS was not as bad as some had feared. Indeed, with a P/E ratio of 48.59 there is obviously some real optimism that earnings will bounce back.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
This free interactive report on CFT's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
Given that the market gained 7.4% in the last year, CFT shareholders might be miffed that they lost 58%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. With the stock down 9.1% over the last three months, the market doesn't seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Is CFT cheap compared to other companies? These 3 valuation measures might help you decide.
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IT exchanges.
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.
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. Thank you for reading.