DFDS (CPH:DFDS) shareholders are up 6.3% this past week, but still in the red over the last three years

If you are building a properly diversified stock portfolio, the chances are some of your picks will perform badly. Long term DFDS A/S (CPH:DFDS) shareholders know that all too well, since the share price is down considerably over three years. So they might be feeling emotional about the 54% share price collapse, in that time. And the ride hasn't got any smoother in recent times over the last year, with the price 40% lower in that time.

The recent uptick of 6.3% could be a positive sign of things to come, so let's take a look at historical fundamentals.

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There is no denying that markets are sometimes efficient, but prices do not always reflect 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.

Over the three years that the share price declined, DFDS' earnings per share (EPS) dropped significantly, falling to a loss. Since the company has fallen to a loss making position, it's hard to compare the change in EPS with the share price change. However, we can say we'd expect to see a falling share price in this scenario.

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

We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. Dive deeper into the earnings by checking this interactive graph of DFDS' earnings, revenue and cash flow.

A Different Perspective

The total return of 40% received by DFDS shareholders over the last year isn't far from the market return of -38%. So last year was actually even worse than the last five years, which cost shareholders 8% per year. Weak performance over the long term usually destroys market confidence in a stock, but bargain hunters may want to take a closer look for signs of a turnaround. 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. Even so, be aware that DFDS is showing 2 warning signs in our investment analysis , and 1 of those is a bit unpleasant...

DFDS is not the only stock insiders are buying. So take a peek at this free list of small cap companies at attractive valuations which insiders have been buying.

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