Investors can approximate the average market return by buying an index fund. But if you buy individual stocks, you can do both better or worse than that. For example, the Quartiers Properties AB (publ) (STO:QUART) share price is down 43% in the last year. That’s well below the market decline of 1.0%. Quartiers Properties hasn’t been listed for long, so although we’re wary of recent listings that perform poorly, it may still prove itself with time. Shareholders have had an even rougher run lately, with the share price down 26% in the last 90 days. But this could be related to the weak market, which is down 17% in the same period.
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…’ 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.
During the last year Quartiers Properties saw its earnings per share drop below zero. Buyers no doubt think it’s a temporary situation, but those with a nose for quality have low tolerance for losses. We hope for shareholders’ sake that the company becomes profitable again soon.
The company’s earnings per share (over time) is depicted in the image below (click to see the exact numbers).
Dive deeper into Quartiers Properties’s key metrics by checking this interactive graph of Quartiers Properties’s earnings, revenue and cash flow.
A Different Perspective
Given that the market gained 1.0% in the last year, Quartiers Properties shareholders might be miffed that they lost 43%. While the aim is to do better than that, it’s worth recalling that even great long-term investments sometimes underperform for a year or more. With the stock down 26% over the last three months, the market doesn’t seem to believe that the company has solved all its problems. Given the relatively short history of this stock, we’d remain pretty wary until we see some strong business performance. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we’ve discovered 4 warning signs for Quartiers Properties (2 are a bit concerning!) 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 SE exchanges.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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.
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