Bemobi Mobile Tech (BVMF:BMOB3) sheds R$158m, company earnings and investor returns have been trending downwards for past year

It's easy to match the overall market return by buying an index fund. Active investors aim to buy stocks that vastly outperform the market - but in the process, they risk under-performance. Unfortunately the Bemobi Mobile Tech S.A. (BVMF:BMOB3) share price slid 42% over twelve months. That falls noticeably short of the market decline of around 2.7%. We wouldn't rush to judgement on Bemobi Mobile Tech because we don't have a long term history to look at. Unfortunately the share price momentum is still quite negative, with prices down 16% in thirty days.

With the stock having lost 12% in the past week, it's worth taking a look at business performance and seeing if there's any red flags.

View our latest analysis for Bemobi Mobile Tech

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 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 Bemobi Mobile Tech reported an EPS drop of 9.9% for the last year. This reduction in EPS is not as bad as the 42% share price fall. This suggests the EPS fall has made some shareholders are more nervous about the business.

The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers).

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

A Different Perspective

We doubt Bemobi Mobile Tech shareholders are happy with the loss of 42% over twelve months. That falls short of the market, which lost 2.7%. That's disappointing, but it's worth keeping in mind that the market-wide selling wouldn't have helped. The share price decline has continued throughout the most recent three months, down 5.8%, suggesting an absence of enthusiasm from investors. Given the relatively short history of this stock, we'd remain pretty wary until we see some strong business performance. Before forming an opinion on Bemobi Mobile Tech you might want to consider these 3 valuation metrics.

We will like Bemobi Mobile Tech 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 BR exchanges.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.