Yahoo Finance How Much Did Ramsdens Holdings'(LON:RFX) Shareholders Earn From Share Price Movements Over The Last Year?
Passive investing in an index fund is a good way to ensure your own returns roughly match the overall market. While individual stocks can be big winners, plenty more fail to generate satisfactory returns. Unfortunately the Ramsdens Holdings PLC (LON:RFX) share price slid 39% over twelve months. That's well below the market decline of 3.0%. However, the longer term returns haven't been so bad, with the stock down 26% in the last three years. It's down 1.7% in the last seven days.
Check out our latest analysis for Ramsdens Holdings
While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. 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.
Unhappily, Ramsdens Holdings had to report a 22% decline in EPS over the last year. This reduction in EPS is not as bad as the 39% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business. The P/E ratio of 9.59 also points to the negative market sentiment.
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into Ramsdens Holdings' key metrics by checking this interactive graph of Ramsdens Holdings's earnings, revenue and cash flow.
A Different Perspective
Ramsdens Holdings shareholders are down 39% for the year, falling short of the market return. The market shed around 3.0%, no doubt weighing on the stock price. The three-year loss of 6% per year isn't as bad as the last twelve months, suggesting that the company has not been able to convince the market it has solved its problems. Although Baron Rothschild famously said to "buy when there's blood in the streets, even if the blood is your own", he also focusses on high quality stocks with solid prospects. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Like risks, for instance. Every company has them, and we've spotted 2 warning signs for Ramsdens Holdings (of which 1 makes us a bit uncomfortable!) 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 GB exchanges.
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. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
