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Nagreeka Exports Limited (NSE:NAGREEKEXP) shareholders should be happy to see the share price up 17% in the last month. But that doesn't change the fact that the returns over the last three years have been disappointing. Tragically, the share price declined 58% in that time. So it is really good to see an improvement. After all, could be that the fall was overdone.
View our latest analysis for Nagreeka Exports
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
Although the share price is down over three years, Nagreeka Exports actually managed to grow EPS by 0.4% per year in that time. This is quite a puzzle, and suggests there might be something temporarily buoying the share price. Alternatively, growth expectations may have been unreasonable in the past.
It looks to us like the market was probably too optimistic around growth three years ago. However, taking a look at other business metrics might shed a bit more light on the share price action.
Revenue is actually up 3.6% over the three years, so the share price drop doesn't seem to hinge on revenue, either. It's probably worth investigating Nagreeka Exports further; while we may be missing something on this analysis, there might also be an opportunity.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
Take a more thorough look at Nagreeka Exports's financial health with this free report on its balance sheet.
A Different Perspective
While the broader market gained around 3.0% in the last year, Nagreeka Exports shareholders lost 34%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 14% over the last half decade. We realise that Buffett has said investors should 'buy when there is blood on the streets', but we caution that investors should first be sure they are buying a high quality businesses. Before deciding if you like the current share price, check how Nagreeka Exports scores on these 3 valuation metrics.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.