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Introducing Epwin Group (LON:EPWN), The Stock That Dropped 41% In The Last Three Years

Epwin Group PLC (LON:EPWN) shareholders should be happy to see the share price up 15% in the last month. But that doesn't help the fact that the three year return is less impressive. After all, the share price is down 41% in the last three years, significantly under-performing the market.

Check out our latest analysis for Epwin Group

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

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During the three years that the share price fell, Epwin Group's earnings per share (EPS) dropped by 13% each year. The share price decline of 16% is actually steeper than the EPS slippage. So it's likely that the EPS decline has disappointed the market, leaving investors hesitant to buy. This increased caution is also evident in the rather low P/E ratio, which is sitting at 10.60.

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

AIM:EPWN Past and Future Earnings, April 12th 2019
AIM:EPWN Past and Future Earnings, April 12th 2019

It might be well worthwhile taking a look at our free report on Epwin Group's earnings, revenue and cash flow.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. The TSR incorporates the value of any spin-offs or discounted capital raisings, along with any dividends, based on the assumption that the dividends are reinvested. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Epwin Group, it has a TSR of -29% for the last 3 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return.

A Different Perspective

While the market return was 6.0% in the last year, Epwin Group returned 6.5% to shareholders. Given the three-year TSR of 11% per year, shareholders probably aren't too concerned by the recent gain! It could well be that the business is getting back on track. Importantly, we haven't analysed Epwin Group's dividend history. This free visual report on its dividends is a must-read if you're thinking of buying.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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