The Anglo-Eastern Plantations (LON:AEP) Share Price Is Down 44% So Some Shareholders Are Getting Worried

While not a mind-blowing move, it is good to see that the Anglo-Eastern Plantations Plc (LON:AEP) share price has gained 14% in the last three months. But that cannot eclipse the less-than-impressive returns over the last three years. After all, the share price is down 44% in the last three years, significantly under-performing the market.

Check out our latest analysis for Anglo-Eastern Plantations

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 three years that the share price fell, Anglo-Eastern Plantations's earnings per share (EPS) dropped by 23% each year. In comparison the 18% compound annual share price decline isn't as bad as the EPS drop-off. This suggests that the market retains some optimism around long term earnings stability, despite past EPS declines.

The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).

It might be well worthwhile taking a look at our free report on Anglo-Eastern Plantations's earnings, revenue and cash flow.

A Different Perspective

Although it hurts that Anglo-Eastern Plantations returned a loss of 3.9% in the last twelve months, the broader market was actually worse, returning a loss of 9.3%. Of far more concern is the 4.6% p.a. loss served to shareholders over the last five years. This sort of share price action isn't particularly encouraging, but at least the losses are slowing. 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. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for Anglo-Eastern Plantations (of which 1 is a bit concerning!) you should know about.

Of course Anglo-Eastern Plantations may not be the best stock to buy. So you may wish to see this free collection of growth stocks.

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

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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. 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. Thank you for reading.