Ackermans & Van Haaren (EBR:ACKB) Share Prices Have Dropped 16% In The Last Three Years

Ackermans & Van Haaren NV (EBR:ACKB) shareholders should be happy to see the share price up 20% in the last quarter. If you look at the last three years, the stock price is down. But that's not so bad when you consider its market is down 15%.

See our latest analysis for Ackermans & Van Haaren

While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just 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, Ackermans & Van Haaren's earnings per share (EPS) dropped by 4.4% each year. This change in EPS is reasonably close to the 5% average annual decrease in the share price. So it seems like sentiment towards the stock hasn't changed all that much over time. It seems like the share price is reflecting the declining earnings per share.

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

Dive deeper into Ackermans & Van Haaren's key metrics by checking this interactive graph of Ackermans & Van Haaren's earnings, revenue and cash flow.

What about the Total Shareholder Return (TSR)?

Investors should note that there's a difference between Ackermans & Van Haaren's total shareholder return (TSR) and its share price change, which we've covered above. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Ackermans & Van Haaren's TSR, which was a 12% drop over the last 3 years, was not as bad as the share price return.

A Different Perspective

We regret to report that Ackermans & Van Haaren shareholders are down 12% for the year. Unfortunately, that's worse than the broader market decline of 9.4%. 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. On the bright side, long term shareholders have made money, with a gain of 3% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. 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 Ackermans & Van Haaren (1 is a bit unpleasant!) that you should be aware of before investing here.

We will like Ackermans & Van Haaren 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 BE exchanges.

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