nice to see Summit Securities Co., Ltd. (NSE:SUMMITSEC) shares are up 10% in a week. But the stock has performed poorly over the past five years. In fact, the stock is down 49% for him, far short of the return you can get from buying an index fund.
More encouragingly, the company has increased its market capitalization by Rs 678 crore in the last 7 days, so let’s see if we can identify the cause of shareholder losses over the 5 years.
See the latest analysis from Summit Securities
Markets are powerful pricing mechanisms, but stock prices reflect investor sentiment, not just underlying performance. One way to look at how market sentiment has changed over time is to look at the interaction between a company’s stock price and his earnings per share (EPS).
Over the five-year period, both Summit Securities’ stock price and EPS have declined. The latter is 24% per annum. This EPS decline is worse than the 13% decline in the average annual share price. As such, investors may expect his EPS to recover. Alternatively, he may have predicted a decline in EPS earlier.
The image below shows how the EPS changed over time (click the image to see the exact values).
It’s always a good idea to study the historical growth trends before buying or selling stocks.
another point of view
Last year, while the market as a whole was up about 4.5%, Summit Securities shareholders were down 2.4%. Even blue chip stock prices can fall, but we want to see improvements in the basic metrics of our business before we get too interested. Unfortunately, long-term shareholders have suffered even more given that he has incurred losses of 8% over the past five years. Before we can take the view that the stock price will stabilize, we need clear information suggesting that the company will grow. It’s always interesting to track stock performance over time. However, many other factors should be considered to better understand Summit Securities.Still, note that Summit Securities shows Two warning signs in investment analysis one of which is a bit annoying…
If you like buying stocks with management, you might like this one freedom company list. (Hint: Insiders are buying).
Please note that the market returns quoted in this article reflect the market-weighted average returns of stocks currently traded on the IN exchange.
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This article by Simply Wall St is general in nature. We provide comments based on historical data and analyst projections using only unbiased methodologies and our articles are not intended as financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. We aim to deliver long-term focused analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Is not …