EAB Group Oyj's (HEL:EAB) Shareholders Are Down 36% On Their Shares

EAB Group Oyj (HEL:EAB) shareholders should be happy to see the share price up 20% in the last quarter. But over the last half decade, the stock has not performed well. After all, the share price is down 36% in that time, significantly under-performing the market.

See our latest analysis for EAB Group Oyj

EAB Group Oyj wasn't profitable in the last twelve months, it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). Arguably revenue is our next best option. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

The graphic below depicts how earnings and revenue have changed over time (unveil the exact values by clicking on the image).

Take a more thorough look at EAB Group Oyj's financial health with this free report on its balance sheet.

What About Dividends?

When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. In the case of EAB Group Oyj, it has a TSR of -30% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence!

A Different Perspective

It's good to see that EAB Group Oyj has rewarded shareholders with a total shareholder return of 32% in the last twelve months. And that does include the dividend. That certainly beats the loss of about 5% per year over the last half decade. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand EAB Group Oyj better, we need to consider many other factors. Take risks, for example - EAB Group Oyj has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.

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

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