DFV Deutsche Familienversicherung (ETR:DFV shareholders incur further losses as stock declines 10% this week, taking three-year losses to 57%

The truth is that if you invest for long enough, you're going to end up with some losing stocks. Long term DFV Deutsche Familienversicherung AG (ETR:DFV) shareholders know that all too well, since the share price is down considerably over three years. Sadly for them, the share price is down 57% in that time. More recently, the share price has dropped a further 17% in a month.

If the past week is anything to go by, investor sentiment for DFV Deutsche Familienversicherung isn't positive, so let's see if there's a mismatch between fundamentals and the share price.

See our latest analysis for DFV Deutsche Familienversicherung

To quote Buffett, 'Ships will sail around the world but the Flat Earth Society will flourish. There will continue to be wide discrepancies between price and value in the marketplace...' One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

DFV Deutsche Familienversicherung became profitable within the last five years. That would generally be considered a positive, so we are surprised to see the share price is down. So given the share price is down it's worth checking some other metrics too.

Revenue is actually up 19% over the three years, so the share price drop doesn't seem to hinge on revenue, either. This analysis is just perfunctory, but it might be worth researching DFV Deutsche Familienversicherung more closely, as sometimes stocks fall unfairly. This could present an opportunity.

You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).

It is of course excellent to see how DFV Deutsche Familienversicherung has grown profits over the years, but the future is more important for shareholders. If you are thinking of buying or selling DFV Deutsche Familienversicherung stock, you should check out this FREE detailed report on its balance sheet.

A Different Perspective

DFV Deutsche Familienversicherung shareholders are down 17% for the year, but the market itself is up 0.7%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Regrettably, last year's performance caps off a bad run, with the shareholders facing a total loss of 7% 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. For example, we've discovered 1 warning sign for DFV Deutsche Familienversicherung that you should be aware of before investing here.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com