While it may not be enough for some shareholders, we think it is good to see the IMMOFINANZ AG (VIE:IIA) share price up 26% in a single quarter. But that is minimal compensation for the share price under-performance over the last year. The cold reality is that the stock has dropped 31% in one year, under-performing the market.
Check out our latest analysis for IMMOFINANZ
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.
Unfortunately IMMOFINANZ reported an EPS drop of 80% for the last year. The share price fall of 31% isn't as bad as the reduction in earnings per share. So despite the weak per-share profits, some investors are probably relieved the situation wasn't more difficult.
You can see below how EPS has changed over time (discover the exact values by clicking on the image).
Dive deeper into IMMOFINANZ's key metrics by checking this interactive graph of IMMOFINANZ's earnings, revenue and cash flow.
A Different Perspective
While the broader market lost about 6.9% in the twelve months, IMMOFINANZ shareholders did even worse, losing 31%. However, it could simply be that the share price has been impacted by broader market jitters. It might be worth keeping an eye on the fundamentals, in case there's a good opportunity. Unfortunately, last year's performance may indicate unresolved challenges, given that it was worse than the annualised loss of 1.9% over the last half decade. 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. 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. Case in point: We've spotted 5 warning signs for IMMOFINANZ you should be aware of, and 1 of them is a bit unpleasant.
We will like IMMOFINANZ better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
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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About WBAG:IIA
IMMOFINANZ
Acquires, develops, owns, rents, and manages properties primarily in Austria, Germany, Poland, the Czech Republic, Hungary, Romania, Slovakia, and the Adriatic region.
Undervalued with reasonable growth potential.