Imagine Owning ANI Integrated Services (NSE:AISL) While The Price Tanked 59%

Even the best stock pickers will make plenty of bad investments. Anyone who held ANI Integrated Services Limited (NSE:AISL) over the last year knows what a loser feels like. To wit the share price is down 59% in that time. ANI Integrated Services hasn't been listed for long, so although we're wary of recent listings that perform poorly, it may still prove itself with time. The falls have accelerated recently, with the share price down 13% in the last three months.

Check out our latest analysis for ANI Integrated Services

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...' 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 ANI Integrated Services reported an EPS drop of 20% for the last year. This reduction in EPS is not as bad as the 59% share price fall. So it seems the market was too confident about the business, a year ago. The less favorable sentiment is reflected in its current P/E ratio of 5.10.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

NSEI:AISL Past and Future Earnings, November 10th 2019
NSEI:AISL Past and Future Earnings, November 10th 2019

We like that insiders have been buying shares in the last twelve months. Even so, future earnings will be far more important to whether current shareholders make money. Dive deeper into the earnings by checking this interactive graph of ANI Integrated Services's earnings, revenue and cash flow.

A Different Perspective

While ANI Integrated Services shareholders are down 59% for the year (even including dividends) , the market itself is up 7.1%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 13% 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. If you want to research this stock further, the data on insider buying is an obvious place to start. You can click here to see who has been buying shares - and the price they paid.

ANI Integrated Services is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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