Nasdaq
华尔街日报Dr. Miele Cosmed Group's (WSE:DMG) earnings have declined over year, contributing to shareholders 45% loss
It's nice to see the Dr. Miele Cosmed Group S.A. (WSE:DMG) share price up 12% in a week. But in truth the last year hasn't been good for the share price. After all, the share price is down 47% in the last year, significantly under-performing the market.
While the stock has risen 12% in the past week but long term shareholders are still in the red, let's see what the fundamentals can tell us.
In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. 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.
Unfortunately Dr. Miele Cosmed Group reported an EPS drop of 32% for the last year. This reduction in EPS is not as bad as the 47% share price fall. So it seems the market was too confident about the business, a year ago. The less favorable sentiment is reflected in its current P/E ratio of 10.43.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
This free interactive report on Dr. Miele Cosmed Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.
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. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Dr. Miele Cosmed Group, it has a TSR of -45% for the last 1 year. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!
A Different Perspective
Investors in Dr. Miele Cosmed Group had a tough year, with a total loss of 45% (including dividends), against a market gain of about 45%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 6% 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 Dr. Miele Cosmed Group better, we need to consider many other factors. Take risks, for example - Dr. Miele Cosmed Group has 3 warning signs we think you should be aware of.
But note: Dr. Miele Cosmed Group may not be the best stock to buy. So take a peek at this free list of interesting companies with past earnings growth (and further growth forecast).
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Polish exchanges.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.