Semperit Holding's (VIE:SEM) Stock Price Has Reduced60% In The Past Five Years

This month, we saw the Semperit Aktiengesellschaft Holding (VIE:SEM) up an impressive 34%. But don't envy holders -- looking back over 5 years the returns have been really bad. Indeed, the share price is down 60% in the period. Some might say the recent bounce is to be expected after such a bad drop. Of course, this could be the start of a turnaround.

View our latest analysis for Semperit Holding

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Semperit Holding has made a profit in the past. However, it made a loss in the last twelve months, suggesting profit may be an unreliable metric at this stage. Other metrics may better explain the share price move.

The revenue fall of 0.9% per year for five years is neither good nor terrible. But if the market expected durable top line growth, then that could explain the share price weakness.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

If you are thinking of buying or selling Semperit Holding stock, you should check out this FREE detailed report on its balance sheet.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Semperit Holding's total shareholder return (TSR) and its share price change, which we've covered above. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Its history of dividend payouts mean that Semperit Holding's TSR, which was a 58% drop over the last 5 years, was not as bad as the share price return.

A Different Perspective

We're pleased to report that Semperit Holding shareholders have received a total shareholder return of 19% over one year. Notably the five-year annualised TSR loss of 9.5% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Semperit Holding better, we need to consider many other factors. For example, we've discovered 1 warning sign for Semperit Holding that you should be aware of before investing here.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on AT exchanges.

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