Those Who Purchased Lehto Group Oyj (HEL:LEHTO) Shares A Year Ago Have A 63% Loss To Show For It
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The nature of investing is that you win some, and you lose some. Unfortunately, shareholders of Lehto Group Oyj (HEL:LEHTO) have suffered share price declines over the last year. In that relatively short period, the share price has plunged 63%. However, the longer term returns haven't been so bad, with the stock down 28% in the last three years.
Check out our latest analysis for Lehto Group Oyj
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, Lehto Group Oyj had to report a 44% decline in EPS over the last year. This reduction in EPS is not as bad as the 63% share price fall. Unsurprisingly, given the lack of EPS growth, the market seems to be more cautious about the stock. The P/E ratio of 8.58 also points to the negative market sentiment.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into Lehto Group Oyj's key metrics by checking this interactive graph of Lehto Group Oyj's earnings, revenue and cash flow.
What About Dividends?
It is important to consider the total shareholder return, as well as the share price return, for any given stock. 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. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. We note that for Lehto Group Oyj the TSR over the last year was -61%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
Over the last year, Lehto Group Oyj shareholders took a loss of 61%, including dividends. In contrast the market gained about 1.4%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. The three-year loss of 6.9% 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 Warren Buffett famously said he likes to 'buy when there is blood on the streets', he also focusses on high quality stocks with solid prospects. Keeping this in mind, a solid next step might be to take a look at Lehto Group Oyj's dividend track record. This free interactive graph is a great place to start.
But note: Lehto Group Oyj 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 FI exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
