The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Super Group (SGHC) Limited (NYSE:SGHC) have suffered share price declines over the last year. The share price is down a hefty 59% in that time. We wouldn't rush to judgement on Super Group (SGHC) because we don't have a long term history to look at. It's down 61% in about a quarter.
Given the past week has been tough on shareholders, let's investigate the fundamentals and see what we can learn.
While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. 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, Super Group (SGHC) had to report a 47% decline in EPS over the last year. The share price decline of 59% is actually more than the EPS drop. This suggests the EPS fall has made some shareholders are more nervous about the business. Of course, with a P/E ratio of 56.41, the market remains optimistic.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
It might be well worthwhile taking a look at our free report on Super Group (SGHC)'s earnings, revenue and cash flow.
A Different Perspective
Super Group (SGHC) shareholders are down 59% for the year, even worse than the market loss of 21%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. Notably, the loss over the last year isn't as bad as the 61% drop in the last three months. This probably signals that the business has recently disappointed shareholders - it will take time to win them back. 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. Case in point: We've spotted 4 warning signs for Super Group (SGHC) you should be aware of, and 1 of them can't be ignored.
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US 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.