In This Article:
As every investor would know, not every swing hits the sweet spot. But you have a problem if you face massive losses more than once in a while. So take a moment to sympathize with the long term shareholders of Strix Group Plc (LON:KETL), who have seen the share price tank a massive 80% over a three year period. That would certainly shake our confidence in the decision to own the stock. The falls have accelerated recently, with the share price down 18% in the last three months. We note that the company has reported results fairly recently; and the market is hardly delighted. You can check out the latest numbers in our company report.
After losing 17% this past week, it's worth investigating the company's fundamentals to see what we can infer from past performance.
Check out our latest analysis for Strix Group
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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.
Strix Group saw its EPS decline at a compound rate of 36% per year, over the last three years. This fall in EPS isn't far from the rate of share price decline, which was 42% per year. So it seems that investor expectations of the company are staying pretty steady, despite the disappointment. It seems like the share price is reflecting the declining earnings per share.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into Strix Group's key metrics by checking this interactive graph of Strix Group's earnings, revenue and cash flow.
What About The Total Shareholder Return (TSR)?
We've already covered Strix Group's share price action, but we should also mention its total shareholder return (TSR). Arguably the TSR is a more complete return calculation because it accounts for the value of dividends (as if they were reinvested), along with the hypothetical value of any discounted capital that have been offered to shareholders. Strix Group's TSR of was a loss of 78% for the 3 years. That wasn't as bad as its share price return, because it has paid dividends.
A Different Perspective
It's good to see that Strix Group has rewarded shareholders with a total shareholder return of 15% in the last twelve months. There's no doubt those recent returns are much better than the TSR loss of 9% per year over five years. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Strix Group better, we need to consider many other factors. Consider risks, for instance. Every company has them, and we've spotted 4 warning signs for Strix Group you should know about.