The Qatar Insurance Company Q.S.P.C (DSM:QATI) Share Price Is Down 65% So Some Shareholders Are Wishing They Sold

If you love investing in stocks you're bound to buy some losers. Long term Qatar Insurance Company Q.S.P.C. (DSM:QATI) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 65% in that time. And more recent buyers are having a tough time too, with a drop of 46% in the last year. Shareholders have had an even rougher run lately, with the share price down 32% in the last 90 days. But this could be related to the weak market, which is down 18% in the same period.

View our latest analysis for Qatar Insurance Company Q.S.P.C

There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

During the three years that the share price fell, Qatar Insurance Company Q.S.P.C's earnings per share (EPS) dropped by 20% each year. This reduction in EPS is slower than the 30% annual reduction in the share price. So it seems the market was too confident about the business, in the past.

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

This free interactive report on Qatar Insurance Company Q.S.P.C's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

What About Dividends?

It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of Qatar Insurance Company Q.S.P.C, it has a TSR of -61% for the last 3 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments!

A Different Perspective

While the broader market lost about 13% in the twelve months, Qatar Insurance Company Q.S.P.C shareholders did even worse, losing 43% (even including dividends) . Having said that, it's inevitable that some stocks will be oversold in a falling market. The key is to keep your eyes on the fundamental developments. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 10% over the last half decade. Generally speaking long term share price weakness can be a bad sign, though contrarian investors might want to research the stock in hope of a turnaround. It's always interesting to track share price performance over the longer term. But to understand Qatar Insurance Company Q.S.P.C better, we need to consider many other factors. Take risks, for example - Qatar Insurance Company Q.S.P.C has 3 warning signs we think you should be aware of.

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

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

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.

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. Thank you for reading.