Yahoo Finance Investors Who Bought Landi Renzo (BIT:LR) Shares A Year Ago Are Now Down 63%
Even the best stock pickers will make plenty of bad investments. And unfortunately for Landi Renzo S.p.A. (BIT:LR) shareholders, the stock is a lot lower today than it was a year ago. The share price has slid 63% in that time. Longer term shareholders haven't suffered as badly, since the stock is down a comparatively less painful 9.9% in three years. Shareholders have had an even rougher run lately, with the share price down 51% in the last 90 days. But this could be related to the weak market, which is down 27% in the same period.
See our latest analysis for Landi Renzo
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 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.
During the unfortunate twelve months during which the Landi Renzo share price fell, it actually saw its earnings per share (EPS) improve by 29%. It's quite possible that growth expectations may have been unreasonable in the past.
It's fair to say that the share price does not seem to be reflecting the EPS growth. But we might find some different metrics explain the share price movements better.
Revenue was fairly steady year on year, which isn't usually such a bad thing. However, it is certainly possible the market was expecting an uptick in revenue, and that the share price fall reflects that disappointment.
You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).
We know that Landi Renzo has improved its bottom line over the last three years, but what does the future have in store? If you are thinking of buying or selling Landi Renzo stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
While the broader market lost about 19% in the twelve months, Landi Renzo shareholders did even worse, losing 63%. Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 16% per year over five years. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Landi Renzo better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Landi Renzo (of which 1 is concerning!) you should know about.
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on IT exchanges.
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.
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. Thank you for reading.
