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DigitalBridge Group, Inc. (NYSE:DBRG) shareholders should be happy to see the share price up 11% in the last week. But that is small recompense for the exasperating returns over three years. In that time, the share price dropped 58%. Some might say the recent bounce is to be expected after such a bad drop. Perhaps the company has turned over a new leaf.
The recent uptick of 11% could be a positive sign of things to come, so let's take a look at historical fundamentals.
Check out our latest analysis for DigitalBridge Group
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 imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.
During the three years that the share price fell, DigitalBridge Group's earnings per share (EPS) dropped by 28% each year. This change in EPS is reasonably close to the 25% average annual decrease in the share price. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. Rather, the share price has approximately tracked EPS growth.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on DigitalBridge Group's earnings, revenue and cash flow.
A Different Perspective
While the broader market gained around 26% in the last year, DigitalBridge Group shareholders lost 41% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 6% over the last half decade. 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. It's always interesting to track share price performance over the longer term. But to understand DigitalBridge Group better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for DigitalBridge Group (of which 1 makes us a bit uncomfortable!) you should know about.
For those who like to find winning investments this free list of undervalued companies with recent insider purchasing, could be just the ticket.