Yahoo Finance GB Group (LON:GBG) investors are sitting on a loss of 61% if they invested three years ago
While not a mind-blowing move, it is good to see that the GB Group plc (LON:GBG) share price has gained 23% in the last three months. But that is small recompense for the exasperating returns over three years. Regrettably, the share price slid 62% in that period. So the improvement may be a real relief to some. Perhaps the company has turned over a new leaf.
Now let's have a look at the company's fundamentals, and see if the long term shareholder return has matched the performance of the underlying business.
See our latest analysis for GB Group
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. 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.
GB Group saw its share price decline over the three years in which its EPS also dropped, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. But it's safe to say we'd generally expect the share price to be lower as a result!
The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).
It might be well worthwhile taking a look at our free report on GB Group's earnings, revenue and cash flow.
A Different Perspective
It's good to see that GB Group has rewarded shareholders with a total shareholder return of 24% in the last twelve months. Of course, that includes the dividend. There's no doubt those recent returns are much better than the TSR loss of 7% per year over five years. The long term loss makes us cautious, but the short term TSR gain certainly hints at a brighter future. If you would like to research GB Group in more detail then you might want to take a look at whether insiders have been buying or selling shares in the company.
But note: GB 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 British 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.
