Manazel PJSC (ADX:MANAZEL) Share Prices Have Dropped 35% In The Last Three Years

While it may not be enough for some shareholders, we think it is good to see the Manazel PJSC (ADX:MANAZEL) share price up 21% in a single quarter. But that doesn't help the fact that the three year return is less impressive. Truth be told the share price declined 35% in three years and that return, Dear Reader, falls short of what you could have got from passive investing with an index fund.

Check out our latest analysis for Manazel PJSC

To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement.

Manazel PJSC saw its EPS decline at a compound rate of 72% per year, over the last three years. This fall in the EPS is worse than the 13% compound annual share price fall. So, despite the prior disappointment, shareholders must have some confidence the situation will improve, longer term. This positive sentiment is also reflected in the generous P/E ratio of 202.70.

You can see below how EPS has changed over time (discover the exact values by clicking on the image).

Dive deeper into Manazel PJSC's key metrics by checking this interactive graph of Manazel PJSC's earnings, revenue and cash flow.

A Different Perspective

While the broader market gained around 17% in the last year, Manazel PJSC shareholders lost 6.9%. However, keep in mind that even the best stocks will sometimes underperform the market over a twelve month period. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 4% per year over five years. We realise that Baron Rothschild has said investors should "buy when there is blood on the streets", but we caution that investors should first be sure they are buying a high quality business. 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. Take risks, for example - Manazel PJSC has 4 warning signs (and 2 which are a bit concerning) we think you should know about.

Of course Manazel PJSC 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 AE 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.
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