Recent 12% pullback isn't enough to hurt long-term Balta Group (EBR:BALTA) shareholders, they're still up 129% over 1 year

By
Simply Wall St
Published
September 04, 2021
ENXTBR:BALTA
Source: Shutterstock

The Balta Group NV (EBR:BALTA) share price has had a bad week, falling 12%. Despite this, the stock is a strong performer over the last year, no doubt about that. Indeed, the share price is up an impressive 129% in that time. So it may be that the share price is simply cooling off after a strong rise. The real question is whether the business is trending in the right direction.

Although Balta Group has shed €12m from its market cap this week, let's take a look at its longer term fundamental trends and see if they've driven returns.

See our latest analysis for Balta Group

While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS).

Balta Group went from making a loss to reporting a profit, in the last year.

We think the growth looks very prospective, so we're not surprised the market liked it too. Inflection points like this can be a great time to take a closer look at a company.

The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).

earnings-per-share-growth
ENXTBR:BALTA Earnings Per Share Growth September 5th 2021

We know that Balta Group has improved its bottom line lately, but is it going to grow revenue? Check if analysts think Balta Group will grow revenue in the future.

A Different Perspective

We're pleased to report that Balta Group rewarded shareholders with a total shareholder return of 129% over the last year. That certainly beats the loss of about 14% per year over three years. The optimist would say this is evidence that the stock has bottomed, and better days lie ahead. 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 2 warning signs for Balta Group (1 is concerning!) that you should be aware of before investing here.

Of course Balta Group 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 BE exchanges.

If you’re looking to trade Balta Group, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.