Many investors define successful investing as beating the market average over the long term. But its virtually certain that sometimes you will buy stocks that fall short of the market average returns. We regret to report that long term Plc Uutechnic Group Oyj (HEL:UUTEC) shareholders have had that experience, with the share price dropping 31% in three years, versus a market return of about 26%. The falls have accelerated recently, with the share price down 14% in the last three months.
View our latest analysis for Plc Uutechnic Group Oyj
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 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).
Plc Uutechnic Group Oyj saw its EPS decline at a compound rate of 3.9% per year, over the last three years. This reduction in EPS is slower than the 12% annual reduction in the share price. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
This free interactive report on Plc Uutechnic Group Oyj's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
A Different Perspective
The last twelve months weren't great for Plc Uutechnic Group Oyj shares, which performed worse than the market, costing holders 6.8%. Meanwhile, the broader market slid about 1.1%, likely weighing on the stock. Unfortunately, the longer term story isn't pretty, with investment losses running at 12% per year over three years. We'd need clear signs of growth in the underlying business before we could muster much enthusiasm for this one. Before deciding if you like the current share price, check how Plc Uutechnic Group Oyj scores on these 3 valuation metrics.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on FI 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.